Bitcoin Remains Above $31,000

"Bitcoin has lost about 1% over the last day and is trading at around $31,800. The crypto community is joking that Bitcoin is now playing the role of stablecoin. However, almost no one in the market feels joy at what is happening, as the longer the sideways movement lasts, combined with a gradual decline in price levels, the higher the probability that a massive sell-off will start. With a high probability, further successful episodes of breaking out of round value will not end with vigorous buying by discount-chasing investors, but will prepare most to wait for new lows.

Potential buyers are becoming more cautious, believing the crypto could fall to $10,000 over the next few quarters. This is the level that will be able to attract large investors. In the context of investors' general suspicion of the cryptocurrency market, the Bitcoin dominance index has grown to 46.1%. Further growth of the index will indicate an increasingly alarming sentiment among cryptocurrency market participants.

For quite some time, the greed and fear index for Bitcoin and the largest cryptocurrencies has been in 'extreme fear' mode, starting the workweek at around 24 points. The recovery of the hashrate in the Bitcoin network has stalled and even shows a slight decline. Apparently, the return to running computing power may not be as easy as it seemed in the early stages. As the price falls, miners may, in principle, be hesitant about their willingness to move into other territories and connect their ASIC devices."