Experts from the analytical company K33 Research stated that on August 5, 2024, Bitcoin demonstrated the most volatile trading day since the collapse of the FTX cryptocurrency exchange. The last time the indicator reached such values was in November 2022.
Volumes near all-time highs, biggest leverage flush since August 2023, largest high/low spread since the FTX collapse — all in a manic correlation 1 moment.
Seasonality factors and deleveraging momentum point towards stagnation in the coming weeks.https://t.co/tFhuPYAOTg
— K33 Research (@K33Research) August 6, 2024
The report said the market was experiencing a global sell-off in the asset, with the so-called high-low spread jumping to 19%, with price fluctuations reaching their highest in 20 months.
Representatives of K33 Research point out that on August 5, the difference between the highest and lowest prices for the first cryptocurrency resembled the autumn “chaos” of 2022. At the same time, the fall in the value of Bitcoin below the $50,000 mark led to a significant increase in trading.
This figure reached $14.5 billion on the first day of the week, setting a record high since March 2024. At the same time, the trading turnover of the entire crypto market amounted to $244 billion.
K33 Research analysts Vetle Lunde and David Zimmerman believe that the Bitcoin price will remain in the $50,000 to $58,000 range in the near future. In their opinion, this factor will be affected by a sharp drop in the conditional open interest on perpetual futures for the asset.
Let us recall that the collapse of the first cryptocurrency occurred from August 4 to 5, 2024. The price of Bitcoin fell below $50,000, Ethereum – $2,200. Following these assets, there was a significant decrease in the value of most altcoins.
At the time of writing, the Bitcoin rate is holding at $56,597, according to data TradingView. Over the past week, the asset’s value has fallen by 14.47%. The market capitalization of the first cryptocurrency is $1.12 trillion.
Amid the global decline in the digital asset market, analyst Peter Brandt compared the current phase of the Bitcoin segment to the cycle from 2015 to 2017. He noted that these events correspond to a similar trend before the start of the “bullish” growth.
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Source: Cryptocurrency
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