Price correction is a healthy aspect of the bull market because it allows assets to recover the momentum of losses. With the price stabilizing below $40,000, Bitcoin has experienced a similar period in the past few days. Although this is the case with BTC, some altcoins took advantage of the lagging rebound and experienced high price fluctuations this week.
Although altcoins usually perform during Bitcoin’s stagnation period, such situations are always temporary. As far as Bitcoin is concerned, let’s see how long this stagnation period may last.
Bullish altcoins this week
Starting from Ethereum, the world’s largest altcoin hit a monthly high of $2,774, and this price last appeared on June 7. Part of the momentum of Ethereum’s rise this time comes from its hard fork event. More importantly, in the past week, retail investors’ demand for Ethereum has also increased.
Chainlink has been able to show a V-shaped recovery on the chart, rebounding to $25 on August 4, and then consolidating at $23. However, Chainlink’s correlation with Bitcoin is also low. Therefore, over time, the performance of these two assets varies in different periods.
(Image source: Intotheblock)
Speaking of irrelevant assets, Uniswap has also made some achievements, because as of press time, this open financial asset has risen to more than $20. As of August 6, a double bottom pattern (W bottom) is taking shape, which also means that the market may break through.
Today, these assets have been performing well when Bitcoin is in a mild dilemma. So how long will it take for Bitcoin to recover?
How long may the Bitcoin stagnation period last?
The answer is, it won’t be long.
(Image source: Trading View)
As of press time, Bitcoin has been in a “stagnation” phase since July 31. In short, it is “resting”. On August 1, the asset temporarily exceeded $42,000. However, the price was corrected almost instantaneously. 24 hours ago, Bitcoin successfully got rid of the downward pattern. However, as of August 6, the price part of its rebound in the past 12 hours has fallen back to its original position.
Now, the main concern here is that the pause period may have an upper limit.
(Image source: Intotheblock)
According to IntoTheBlock’s data, the number of addresses holding bitcoin at a price of $37,100 is as high as 820,000, holding a total of approximately 398,000 BTC. Therefore, it can be inferred that a decline in valuation and closing below $37,100 will no longer be considered a stagnation period. Bitcoin’s drop below $37,000 may open the door to a bear market. Subsequently, altcoins will also lose their higher market points.
Therefore, if there is an appropriate time to break the stagnation period, then for Bitcoin, it is now. Otherwise, the story will continue to waver between bulls and bears.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/exposing-the-reasons-why-bitcoins-stagnation-period-must-end/
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