Bitcoin has been trading at a range for months now, unable to break the resistance and also finding sufficient support at $30,000.
Experts believe that this support will hold, with traders revealing they have now turned to betting on the small movements in price within that range.
Bitcoin seems to have been trading just above $30,000 for ages now. After hitting its record high at over $64,000, it has stagnated and now seems range-bound between $30,000 and $40,000. The last time it was trading substantially above $40,000 was in mid-May. With resistance proving nearly impossible to breach and support proving strong, traders are now turning to betting on smaller market movements to make money.
At press time, BTC is trading at $31,340, up by a mere $120 in the past day as per our data. The volume is 10 percent down, understandably so with this being a weekend. In the past seven days, the top crypto has not traded above $34,500.
The $30,000 level may be the real bottom for Bitcoin according to some crypto trading experts. These experts have cited the BTC options market as a key indicator. In this market, $30,000 is the most sold downside strike for this month and August.
According to Delta, a crypto derivatives exchange, this shows that traders are confident that the crypto won’t slide below this level. The exchange’s CEO Pankaj Balani told Bloomberg that this level “should provide a strong support to the market.”
Bitcoin traders now living for the small wins
If not for anything else, Bitcoin is known for its wild volatility. In fact, this is one of the key reasons regulators have been cautioning the public against investing – or at least investing what they can afford to lose – in cryptos.
However, since May, the market has been anything but volatile. This has affected investors, especially the day traders who depend on the price swings to make money.
These traders are now betting on much smaller wins to earn a living.
Todd Morakis, who is the co-founder of digital finance firm JST Capital revealed that traders are targeting the smaller price swings. They are reportedly buying within the $30,000 to $32,000 level – like where Bitcoin is right now – and selling when the market goes above the $34,000 level.
And while crypto has always reacted to any news, whether bad or good with price swings, Morakis revealed that nowadays, “the market at the moment seems to paying attention more to bad news than good.” And there hasn’t been a shortage of bad news.
Despite the lackluster performance, there are many who still believe Bitcoin will rally back to former highs. They have pointed at the rising inflation and how Bitcoin has become a critical hedge against it as well as the continued support from institutions. And there are rumors that Apple might have bought $2 billion worth of Bitcoin, but it’s just that, rumors.
People who bought #BTC at $20000 and held are in profit
People who bought $BTC at $60000+ will also be in profit
It’s always been a matter of time and patience
— Rekt Capital (@rektcapital) July 16, 2021
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