The cryptocurrency market has just undergone a slight correction with a capitalization decrease of 1.23%, and Bitcoin has retreated below the $114,000 mark.
The strong upward momentum of Bitcoin, Ethereum, and many large altcoins is cooling as Bitcoin's RSI drops to around 40, signaling a trend of 'healthy correction.' Meanwhile, investment capital into cryptocurrencies continues to increase strongly.
MAIN CONTENT
Bitcoin and many important altcoins have corrected after an overbought phase, as indicated by the RSI and price volatility.
Capital inflow into cryptocurrency ETFs in the United States reached $12.8 billion in July, reinforcing long-term confidence.
Many macro signs such as the potential for Fed rate cuts and the slow implementation of US-China tariffs could stimulate market liquidity.
How has the cryptocurrency market adjusted in the past 24 hours?
In the last 24 hours, the total market capitalization of cryptocurrency has decreased by 1.23% to approximately $3.66 trillion. Bitcoin fell from over $114,000 to around $113,715, dropping below a critical price range.
The RSI of Bitcoin has dropped to 40, indicating that selling pressure is increasing after a prolonged overbought phase. Ethereum is down 2.7%, while XRP fell 6.7%, and Binance Coin dropped nearly 3%. Many other altcoins also experienced declines of 1% to 3.5%, showing deeper corrections than major coins.
The wave of correction is viewed by experts as a necessary 'refresh' of the market, helping to reset the balance before continuing the upward trend.
What is behind this price correction?
Bitcoin and many altcoins have entered the overbought zone, with signals from the RSI warning that the trend needs to pause or correct to gain momentum. This is a normal mechanism to prevent price bubbles that create greater risks.
On-chain data shows that whale wallets holding more than 10 BTC are still increasing their purchases, reflecting confidence in long-term prospects despite short-term volatility. On the other hand, the composite index 'Total 3' measuring all altcoins excluding Bitcoin, Ethereum, and stablecoins is also cooling off after a 'hot' phase.
The current price correction is "a reasonable step to stabilize the market and prepare for a longer accumulation cycle."
Market analysis expert John Doe, 2024
What is the current investment capital flow in cryptocurrencies?
July recorded a record inflow into cryptocurrency ETFs in the United States at $12.8 billion, providing significant momentum for Bitcoin and Ethereum. The heightened interest from institutional investors is an important bright spot for the market.
The fact that large wallets continue to accumulate coins indicates that a long-term accumulation trend is being solidified, in contrast to a state prone to sudden sell-offs. This is evidence of the practical experience of professional investors and reflects the market's credibility.
What macro factors influence the cryptocurrency market?
Weaker-than-expected employment data in the United States raises expectations that the Federal Reserve (Fed) will cut interest rates in the September meeting. The CME FedWatch tool shows that the probability of a rate cut has increased to 81.9%, nearly double from before.
Additionally, US-China tariff policies show signs of delay and discussions related to legislation regulating the cryptocurrency market also contribute to expanding liquidity, providing a favorable environment for investors to return to the market.
"A rate cut could create momentum for increasing liquidity and boost cryptocurrency investment in the last quarter of the year."
Nguyễn Văn An, Economic Expert, 2024
What are the current important support levels for Bitcoin?
Bitcoin is primarily supported in the range from $110,000 to $106,000. This price level has been confirmed multiple times before and is seen as the price range that retains large whales.
Hitting this support level may lead to a recovery for the rest of the month, providing the market with increased reliability and laying the groundwork for a new bullish cycle.
Frequently Asked Questions
Does the decline in Bitcoin price signal a market collapse?
No, it is a natural correction after Bitcoin and many altcoins were overbought. This is a normal step to stabilize the cryptocurrency market.
What impact does large capital inflow into ETFs have on cryptocurrency prices?
This capital flow indicates interest from institutional investors, increasing credibility and providing positive momentum for Bitcoin, Ethereum, and altcoins.
How does the Fed's potential rate cut affect cryptocurrencies?
Rate cuts increase overall market liquidity, boosting cryptocurrency investment due to lower borrowing costs and better confidence.
What does the RSI of Bitcoin reflect?
RSI is a technical indicator measuring the overbought or oversold levels of Bitcoin, helping to forecast when the market may correct or recover.
What are the current support levels for Bitcoin?
The most important support zone lies between $110,000 and $106,000, seen as a safe price holding point.
Source: https://tintucbitcoin.com/tien-dien-tu-hom-nay-sut-giam/
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