As always, around lunchtime we take a look at the live Bitcoin (BTC) price and the prices of the top 25 crypto. We see the price falling, but why? We also analyze notable changes in the correlation between BTC and other investments. Finally, we look at Bitcoin key prices in the near term.
We begin, of course, with the live Bitcoin (BTC) price and prices of the top 25 crypto.
Live bitcoin (BTC) price and prices top 25 crypto drop
At the time of writing, the live Bitcoin (BTC) price is quoting EUR 22,471.51 ($22,859.21). This is 2.32% lower than during our Bitcoin lunch yesterday.
The prices of most of the top 25 crypto are also falling. The biggest loss is for Ethereum Classic (ETC) at -5.66%. Besides the stable coins, only BuidnBuild (BNB), the former BinanceCoin, records a gain of 2.70%. On the site of Tradeincrypto.com you can analyze all live crypto prices 24 hours a day.
Why does the BTC price keep falling?
At the moment, there are several factors that cause the Bitcoin (BTC) price to keep falling after a brief uptrend. On the one hand, we see that there is simply too little demand. The market capitalization is not increasing too much. In fact, if we look at the market capitalization of Bitcoin relative to other crypto we see that the dominance of BTC is actually decreasing.
As a result, BTC does not have enough strength to break through the resistances between $23,000.00 and $25,000.00 in order to enter the bullish area towards $30,000.00.
Finally, we see that more and more institutional investors are entering BTC trading. In doing so, they are using risk models that they also apply to other riskier investments. As a result, Bitcoin is showing increasing correlation with other investments.
Bitcoin (BTC) correlation shifts from tech stocks to…
Meanwhile, we see that Bitcoin, which for a long time had a strong correlation with tech stocks, is lagging slightly behind stock prices.
This is in line with a study by Bloomberg. In fact, Bloomberg Intelligence published a study via LinkedIn on the correlation between various investments. That research can be viewed here:
Twitter won’t load because you didn’t give permission.
Is the Flush Done? Booms, Busts and #Bitcoin vs. #Gold, #Bonds, #Oil – Whether the ebbing tide has subsided for most assets is the top binary issue for 2H, and in most scenarios, Bitcoin and Ethereum appear poised to come out ahead. Link to Pdf:https://t.co/iFSCZIULHe
– Mike McGlone (@mikemcglone11) August 3, 2022
This shows that the Bitcoin price moves more like US treasury bonds and gold than like (tech) stocks move. It further expects a base price to develop around $20,000 and that the currency has a lot of potential. Finally, they conclude that the BTC has been one of the most profitable investments since its inception.
These are the Bitcoin (BTC) key quotes in the short term
Analyzing the Bitcoin (BTC) price, we see that it has fallen back below $23,000 since this morning. With that, the 200-week moving average (around $22,700.00) remains one of the most important key quotes for crypto investors.
The outlook is neutral to slightly bearish. One expects if it dips below $22,700 a drop to the support level of $22,225, where there is room for price recovery towards the top of the Bollinger Bands. If this bottom does not hold, a further price decline is imminent as the next support level is at $20,700.
Want to stay informed about the latest price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. So it could be an exciting afternoon.
Note: We never give financial advice, so you can’t interpret our contributions that way either. Always do your own research and decide rationally if, when, what and how much you want to invest in.