During the short-term acceleration of BTC's decline, the on-market price oversold severely, causing the premium rate of the BTC OTC price to the on-market price to rise significantly. From the perspective of historical premium rate performance, this is the highest peak premium rate performance in 2020, which means that a rebound performance may occur after the price plummet.
The premium rate of BTC over-the-counter prices to on-market prices rebounded to a short-term peak of 1.47%, which was higher than the peak value of 1.39% on March 16, 2020, indicating that price fluctuations are very strong. This shows that the space for investor arbitrage is also increasing. After the emergence of a larger premium rate, the BTC premium rate may converge in a short-term, and this may be the basis for the BTC price rebound on the market.
At the same time, the USDT premium rate rebounded to the highest 2.22%, which was the highest value since mid-April. It means that investors have a strong impulse to trade, and BTC may start to bottom out and rebound. If it is as expected, the chance of BTC at $10,000 will be formed in a short time.
At the same time, the platform currency BNB oversold by 18% and then retreated to around $20 for support. The large retracement of the platform currency and the rapid decline of mainstream currencies such as ETH means that the price adjustment is very sufficient.
The downside is that in the context of the DeFi concept hype during the year, many currencies accumulated a lot of selling. At the same time, the decline in mainstream currency prices follows the adjustment of the stock market. Yesterday, the three major U.S. stock indexes have expanded their adjustments, which means that the currency price retreat is also linked to the decline of the entire financial market. Therefore, in terms of grasping trading opportunities, avoiding short-term risks is the first.
Recently, popular currencies have also fallen sharply. For example, ETH retreated to the short-term low platform, LINK simultaneously retreated to the level of early August, and Polkadot retreated short-term. The overall market found its bottom in heavy volume declines, but none of them fell below the lowest point on August 2. It means that the market may fluctuate repeatedly. In the short-term, focus on the market performance of BTC at $10,000 and the stabilization of mainstream currencies.