• Bitcoin (BTC) price struggles to head towards the crucial resistance close to $27,500 as it failed to attract the required bullish volume.
• Many indicators point towards a lowered interest of the market participants over the star crypto that may heavily impact the value of Bitcoin in the coming days.
• The traders are hysterically behind new tokens which are marking 2000% to 3000% growth in just a few days, while their use cases and fundamentals are not properly known.
Bitcoin Price Struggles
Bitcoin price has been struggling to break past its resistance level of $27,500 as it is failing to attract bullish volume. This could be due to a decreased interest from market participants over this cryptocurrency which could have a long-term effect on its value.
Traders Drawn To New Tokens
Traders have shifted their attention to newer tokens with much higher potential returns, often reaching 2000-3000% within days – despite having an unknown use case or fundamentals. This shift has caused a steep drop in Bitcoin’s on-chain fractals and interactions with its network have dropped to 22 month lows.
Volatility at Historic Lows
The volatility of BTC is also at historic lows, with 60 day annualized volatility falling below 40%. Despite this leading to a 46% gain for investors so far, history suggests there could be a 50% crash following such conditions.
Supply On Exchange Dropping
Supply on exchanges has also decreased significantly which is giving some hope for an upcoming bull rally. However, if this fails then Bitcoin’s (BTC) price may remain stuck below $28,000 in the future.
In conclusion, Bitcoin’s (BTC) price struggles are due its decreased demand from investors and traders shifting their attention towards other tokens with higher potential returns. Volatility remains low which could lead either way for investors – either huge gains or significant losses – depending on whether BTC can break through its resistance level of $27,500 or not.