Cryptos are showing signs of weakness; Bitcoin is close to losing $29,000
The cryptocurrency market continues to show signs of weakness. Bitcoin (BTC) has fallen nearly 2% in the last 24 hours and threatens to lose $29,000, while Ethereum (ETH) has dropped 0.8% and is approaching $1,850.
Edward Moya, senior market analyst at OANDA, noted that the consolidation of the price range has caused the BTC price to "reside closer to the lower boundaries" at $29,000 "as volatility disappears" in the market. So far in July, a historically quite positive month for Bitcoin, the token has fallen more than 4%.
"Short-term support from the $29,500 level broke this early this morning and if bearish momentum builds, key support could target the $27,500 region. The crypto news flow has been uninspiring, with many traders focusing on OPENAI’s Sam Altman’s Worldcoin crypto project. It will take a fresh catalyst to excite Bitcoin traders and right now it seems the price action is destined for a broadening formation, potentially targeting the $27,500 and $31,500 zone," the expert stressed.
Moya also highlighted that one of the most outstanding news in the market has been the launch of Worldcoin (WLD), the eponymous token of Sam Altman, CEO of OpenAI (ChatGPT's), project, which soared 30% on Monday. Some experts believe this news could be an interesting catalyst for the reigning cryptocurrency. However, other market observers are more skeptical, like Vitalik Buterin, co-founder of Ethereum, who has questioned the long-term viability of Altman's project.
This is also the case for analysts at Kaiko, who have highlighted that Bitcoin's trading volume dominance has fallen to its lowest level since April, at 27%, driven by an increase in trading in altcoins following the Ripple ruling. Since the start of 2023, BTC's dominance in this metric has dropped by 20%.
According to these experts, non-US crypto exchanges have experienced a "more extreme" drop in BTC trading activity, in part due to a spike in altcoins volume in South Korea. On U.S. exchanges, altcoins have also gained ground over the past month, suggesting that the Securities and Exchange Commission's (SEC) contrarian stance has yet to curb demand for these digital assets.
Similarly, the momentum coming from exchange-traded funds (ETFs) from BlackRock and other traditional finance giants has dissipated. According to a report from CoinShares, Bitcoin investment products experienced withdrawals of $13 million in the last week and favored other smaller crypto investment products.
In other market news, most altcoins continue to fall. Ripple (XRP) drops 4% after its bull rally, while Cardano (ADA) and Solana (SOL) retreat 3% and 5%, respectively. Dogecoin (DOGE), meanwhile, continues to ride the wave of Musk's revamped Twitter.