Bitcoin and cryptocurrency markets are slowing. There has been very little activity in the past week, volume and volatility have decreased. Technical indicators also indicate that a major move is imminent – or is BTC already on vacation for the rest of the year?
Bitcoin is losing steam
If so, it might not be such a bad thing. One of the points that Bitcoin defamers keep citing is: BTC is too volatile to be used as a daily currency. Admittedly, if a cup of coffee using the payment method of your choice is 20% cheaper ten minutes later, you might choose something else.
Over the past year, these massive price fluctuations have decreased in intensity – and it seems Bitcoin has entered a phase of low volatility.
Day traders looking for quick dollars had to take a break because the movements are minimal at the moment. In the past few days, BTC has only fluctuated around $ 150 in its sideways channel. This is good for price stability – but not good for those looking for quick returns.
This type of action often indicates a bigger pull, and technical indicators like squeezing Bollinger bands are also an indication of this.
Ethereum also weak
This slowdown in momentum has occurred across the board – not just in the Bitcoin markets. Ethereum’s volatility is also low, in some places as low as it was last in 2016, as data from Coin Metrics show.
It could now be the time of year when traders take a break and FOMO is as thin as the first ice. If so, the markets will remain limp until sometime next month.
Ethereum has corrected a whopping 60% this year, which is nothing compared to the epic amount it is from its all-time high. Basically, the token has a solid foundation – with busy developers, ongoing upgrades, and an ever-growing DeFi ecosystem.
However, prices are not as solid at $ 145 and there is little sign of an immediate recovery.
Bitcoin is not doing much better as it pulls back towards $ 7k. BTC lost 4.5% in the week and fell 17% in the month. There are no signs of a turnaround, so this next step is likely to be a continuation.
The crypto markets are back below $ 200 billion, as they were in early May. The summer rally 2019 will be a distant memory – and all signs point to another long crypto winter.