The Block: Bitcoin at risk of testing new lows

After the price of Bitcoin fell below $110,000, there is a high risk of further decline in the quotes of the first cryptocurrency, analysts interviewed by The Block reported.

As Sean Dawson, head of research at on-chain options exchange Derive.xyz, noted, the start of the week was unsuccessful for the main crypto assets. Bitcoin's daily volatility increased from 15% to 38%, and Ethereum's from 41% to 70%. The main reason for its growth was the publication of the US producer price index, which turned out to be higher than forecasts (0.9% instead of the expected 0.2%).

Traders and investors are now hedging ahead of key data releases: the US GDP report on August 28 and the jobs report in early September. Dawson suggested that Bitcoin could fall below the key $100,000 support level in a few weeks, while Ethereum could fall to $4,000.

The number of active addresses has fallen while the volume of crypto transactions has grown, which means the market is driven by short-term speculators who are easily panicked, rather than by sustainable demand, the expert believes.

In turn, Timothy Misir, head of research at BRN, said that the daily volume of liquidations on the market could exceed $1 billion. According to him, if Bitcoin fails to hold the $100,800 level, this will cause a disruption of the current bullish trend and lead to a new wave of sales.

Earlier, analysts from the on-chain platform CryptoQuant stated that investors who had been buying bitcoins over the past month have begun a massive sell-off of the cryptocurrency and are recording losses.

Source: cryptonews.net