In their recent report, the Coindesk analysts pointed out that increased selling pressure is very much on the cards despite short-term relief. The Crypto market opened at a high rate today. After a volatile weak, Bitcoin was riding above $33,000. Technical analysts said that buyers remain above $30,000 by the end of this week. Further price hikes will sustain a slow pace. However, the possibility of price drops down to $20,000 is still possible. Such a volatile atmosphere further mounts the pressure of massive selling.
The price drops down in May was dramatic. But there is still a possibility for a further drop down which seems quite realistic. In another development, Delphi Digital announced that Bitfinex exchange on Thursday added over 5,000 bitcoins shorts on their wallet. They went long to neutralize short-term periods to stable the prices. The recent trend of a short position is to exploit the price stability for the maximum gain. However, the shot position buildup is still below the level of peak crypto touched in June, said Delphi Digital. This current immense trend of short-term selling has wrapped the market. The market can go squeezed into a short position.
As compared with the S&P 500, Bitcoins raised a lot. However, the comparison with other commodities falls even more. This contrast in the market has encouraged crypto traders; to further diversify digital assets. Mike McGlone sees the current scenario as interested in commodity traders. The senior commodity strategist at Bloomberg predicted that this is the right time to invest in crypto. As per his predictions, bitcoin likely to outperform Brent crude oil this year.
Though bitcoin has narrowly ranged above $3,000, which is still below the height bitcoin reached two months ago. The volatility in the market has divided the traders into two segments: some traders are busy taking high risks to gain profits. A large number of traders are going for a short-term position. On June 30, a Singapore-based QCP Capital, during its interview on The Telegram said that with the potential at $40,000 and strong market support at the $30,000, the possibility cannot be ignored that BTC trades in this $10,000 range shortly.
The prediction that USDC, the second-largest digital asset, might become the commonly used duplication of the U.S. dollar was quite realistic. With the growth of the stable coin industry, USDC is also gaining a lot. The volatility of the market is still high and deeply concentrated. The price could either drop down or go up. But as per today’s price increase in bitcoin, next week cryptocurrency market will begin trade at an upper scale and greater magnitude. Bitcoin is likely to outperform commodities like crude oil.