Analysis of Bitcoin Market: Risk of high sideways trading increases, so be cautious
Since Bitcoin rose to $13,200 yesterday morning, it quickly pulled back to around $12,700 in a short period of time, but it did not hesitate for a long time at this position, and then continued to hit the previous high, and yesterday did not pull up quickly in a short period of time, but It went up step by step with a small range, until it returned to around 13,200 US dollars this morning. Although it did not hit a new high, it also proved the determination of the current market to further impact. Similarly, if the two waves of impact continue to fail to achieve results, the market may fall. Choose to organize, after all, it has been rising since the beginning of this week, and it is about to enter the weekend, so the probability of maintaining the same strong impact is relatively small.
Affected by Paypal’s tradable cryptocurrencies named yesterday, in addition to Bitcoin, the other named eth, bch and ltc also showed higher gains than other currencies, especially eth, yesterday’s increase did not decrease at all the day before yesterday, roughly as much as yesterday The news that eth2.0 will be launched in November is added. The possible attenuation of market power over the weekend cannot be ignored, and we should also be prepared for possible adjustments. After the market slows down a little, some profit-making orders above may choose to sell part of it, which will still have a certain impact on the market. Contract investors especially Pay attention to the rapid fluctuations in the market within a small range.
The day before yesterday, after Paypal announced its recent support for cryptocurrency trading and the ability to buy and sell goods with cryptocurrency in 2021, Paypal continued to take follow-up actions yesterday. It was reported that PayPal intends to acquire the Bitcoin wallet Bitgo.
Friends who are familiar with DeFi are no strangers to Bitgo. WBTC, the leader of locked BTC in the DeFi market, is produced by Bitgo. It has already pledged nearly 100,000 bitcoins. This shows that Paypal is currently preparing to enter the cryptocurrency market on a large scale. .
The relevant actions of Paypal are not surprising, allowing the trading of cryptocurrencies and goods on the platform, which have played a role in attracting and promoting the cryptocurrency market respectively.
From a business point of view, Paypal will not simply make a wedding dress for the cryptocurrency market, and ultimately wants to get a share of the cryptocurrency market, and with its position in the traditional financial market, entering the cryptocurrency market may be a dimensionality reduction blow.
Many people don’t know what Paypal means to the cryptocurrency market. Paypal is known as Alipay in the United States. You can refer to the current business of buying funds and paying on Alipay. Cryptocurrency can be used as a payment channel on Paypal in the future, and it can also be used for financial management. Products, coupled with such a strong traffic, the future development direction of the cryptocurrency market has more possibilities.
If Paypal really succeeds in acquiring Bitgo in the later stage, it will not only be good for the currency price, but based on the huge pledge amount of WBTC, Paypal may also take DeFi as its main target, which is also a great benefit for DeFi.
The good news of DeFi is not limited to this one. Another positive stimulus occurred in the market yesterday. ETH2.0 will also open the genesis block in November.
After the news was announced yesterday, ETH was previously recognized by Paypal as a currency that can be traded on the platform, and then it was stimulated by the news of ETH2.0. It not only broke through 420 US dollars, but also touched 420 US dollars, with a daily increase of more than 6%.
In addition to the most intuitive rise in currency prices, the most beneficial thing about ETH2.0 is the on-chain protocol DeFi. After ETH2.0 goes online, the shortcomings of DeFi, such as congestion, expensive fees, and easy runs, will be greatly improved, which is conducive to the development of DeFi. Next development, it is worth mentioning that with the recent rise in currency prices, the current total locked-up volume (TVL) of DeFi projects has exceeded 12.3 billion US dollars, a record high. It seems that the current development of DeFi is not as good as rumors in the market Unbearable.
There is also good news from Grayscale. Yesterday, Grayscale Bitcoin Trust’s holdings increased by 1,091 BTC again. The total holdings have reached 466,591 BTC, and the total assets have reached 7.3 billion US dollars. It is worthy of the title of Bitcoin bull market engine.
Recently, Bitcoin has been "very wrong", but the good ones are not right. The various bad news at the beginning of the month only caused Bitcoin to drop by 1%. 12,000 US dollars, breaking through 13,000 US dollars again, even gold and US stocks began to be irrelevant, but went out of their own independent rising market.
The performance of the currency price is booming, but investors are caught in a predicament that is getting more and more fearful. Whether it is a social platform or a community of various formats, the reaction to this is relatively general. Does this mean that the situation we explained earlier is true? Contract investors are getting more and more eager to short. However, the current domestic retail investors do not own much Bitcoin spot, and a large-scale bull market atmosphere has not formed.
Back to the market, the growth rate slowed down a little yesterday, but still did not give up and wanted to go higher. At the best time, it rose to 13185, which was only 15 dollars away from the high of 13200, and then began to fall back and close below 13000 dollars. Today's drop during the day is not large, and there is still a chance to continue to have a slight impact in the remaining trading hours.
The current bitcoin price is only about $1,000 away from last year's high of $13,968. It seems that it is not an impossible task to touch or even break through, but the time may not be nearly two days.
The day is about to enter the weekend, and the follow-up impact will be discounted. If it is strong, take advantage of this week's market rise, and you will have a chance to take advantage of the trend as soon as next week. However, this is based on the fact that the two-day fall on the weekend is not deep.
The best situation is to oscillate up and down at this position to digest the risk of rising too fast, and also accumulate chips at this position, so that not only 14,000 is expected, but also a higher position. If it breaks through last year's high, the market will Hot again.
The range of recent activities on the hourly line is relatively obvious, basically operating in the range of 12,600-13,200 US dollars, and the volatility is not small. The current price is in the middle of the operating range, and today’s callback may not be over yet.
The current price is in an appropriate position, and the long-short position on the market is basically 50% against 50%. There is no particular favorable direction, so there is a possibility of a pullback or hitting a high level, but if the time to maintain this position changes Long, if you stop the upward impact, the empty orders will increase instead.
