Bitcoin Hovers Around $10,100

"Bitcoin is fluctuating around $10,000 after an unsuccessful attempt to exceed this level resulted in two simultaneous processes. On the one hand, investors have left the market with less hope for the growth of the crypto. On the other hand, the fall below $10,000 has prompted investors who were looking forward to opening new positions at a good discount.

Even though the price of Bitcoin has been steadily declining, trading volumes, on the contrary, are experiencing significant growth. Thus, on September 6, right when Bitcoin broke the technical and psychological level of $10,000, its trading volume reached $50B. As a comparison, when its price hit $11,500, the trading volume remained at $20B.

Therefore, it can be assumed most panic-prone investors closed their positions just after the crypto fell below this threshold. A correlation has been established between Bitcoin and the traditional stock market and precious metals in the past. Now the situation could make all these markets fall and rise at the same time. Investors are now in a complete risk environment in which they can only survive by constantly rebalancing their portfolios, a small part of which now consists of Bitcoin.

The greed and fear index for Bitcoin and the largest cryptos on the market is in the 'fear' area, which predicts a possible upturn in the crypto market. The main impetus for recovery could probably come from the DeFi sector, which is already experiencing increasingly solid growth attempts."