Analytics

Mainstream Cryptocurrencies Maintain High Volatility, Not Bullish in the Short Term- Jan. 8th

Analysts believe that in the process of BTC pulls reaching the $40,000 mark, the strong shock performance should be said to be expected by investors. In the process from $20,000 to $40,000, adjustment performances close to or exceeding 10% occurred 3 times. Therefore, even investors who hold the cryptocurrency for a long time should not ignore the risks brought by price fluctuations.

With the increase in the number of short-term active addresses and the number of new addresses, the trading enthusiasm of on-market investors is significantly higher than that of off-market. In other words, investors holding cryptocurrencies tend to buy and sell BTC too much, while the number of OTC investors is insufficient, which will inevitably lead to price retreat. The reason is simple. In the process of investors changing hands, there are few takers, and lower profits will bring down prices.

In terms of mainstream cryptocurrencies, most of them followed the retracement of BTC, showing significant signs of adjustment. When an adjustment occurs in a currency that has risen sharply, it becomes a bearish signal for the bulls. In terms of transaction volume, the recent accumulation of BTC and most mainstream cryptocurrency transactions has accelerated, making price fluctuations more characterized by high amplitude and easy trading. Therefore, we must pay special attention to volatility opportunities in the near future to reduce the risk of heavy trading.

Comments (1)

  1. […] double-digit price drops. After a highly positive first ten days of 2021, in which BTC broke above $40K for the first time and created an all-time high of $42,000, the cryptocurrency sharply goes […]

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