Why is Bitcoin stuck at $50,000? 2

Why is Bitcoin stuck at $50,000? 2

Silence covers Wall Street in the last days of summer, but Bitcoin even makes investors sleepy when it stagnates at the price range of 50,000 USD.

Bitcoin price has stagnated after an increase in August. Closing the session on September 1, this cryptocurrency traded at 48,279 USD, before surpassing 50,000 USD in the following session, then retreating to the area of 49,700 USD.

This contrasts with Bitcoin’s high volatility, which has fueled its popularity.

Bitcoin price graph in recent month.

What is keeping Bitcoin as flat as it is today?

Ethereum (ETH) investment funds were injected with $22.4 million in August, according to CoinShares.

NFT – short for Non-Fungible Token – a term for a digital asset using blockchain technology, also increased dramatically from the beginning of the year and continued to maintain this trend until recently.

On OpenSea – the largest NFT exchange today, trading volume has reached 3.5 billion USD in the past 30 days.

Additionally, a growth driver for NFTs is the emergence of new players.

Information about the participation of technology giants has previously been a driving force in Bitcoin’s price increase.

According to data from CoinShares, funds investing in Bitcoin recorded withdrawals of up to $61 million in August. These funds have had net withdrawals in 14 of the last 16 weeks.

Bret Oliver, an analyst at Momentum Structural Analysis, said that Bitcoin’s trading pattern since its peak in April resembles what happened after its peak in 2017.

At that time, the price of this coin reached about 20,000 USD, fell sharply over the next three months, and experienced more than a year of prolonged recession before the next rally began.

This expert believes that this recession will not necessarily last as long as the previous one, but he predicts that the market will be stuck in a sideways range before building a new price level.

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