Bitcoin prices have been hovering around $29,000 for almost a month now. Bulls are persistently defending this level, and this persistence can be seen in the sell-off of 80 081 Bitcoins by the Luna Foundation Guard to support UST. This huge sell-off was easily absorbed by the market. However, such a bullish resistance can only postpone the upcoming plunge and make it even stronger. The downside scenario for Bitcoin was activated with the targets at $25,000 and lower at $20,000. It is only a matter of time until these targets are met. Delaying the correction further may cause prices to drop even lower than these targets.
Any bounce of the digital asset’s price should be viewed as being a good time to seek sell opportunities. We have seen two bearish traps since the beginning of June that spooked investors who tried to reverse the downside trend. This may indicate that the downside trend is strong, and the bears are just waiting for the bulls to weaken and make a final blow. Technically speaking the test of the $32,300 level within a weak pattern of the upward wedge has failed. So, a dive below $29,200 would initiate a downside correction.
WAVES token soared by 150% last week. This spike seems pretty artificial while the entire market is moving in the opposite direction. Moreover, WAVES prices rose by 500% in February-April amid rumours that native tokens USDN were being used to manipulate these prices. Prices have plummeted below $8.3 since then, which is the level where the rally began. So, it is clearly a dead cat bounce that suggests a rapid price spike over a short period of time. WAVES prices peaked $12, and now they may drop to $2.
Puell Multiple, a valuation tool for $BTC looking at Bitcoin miner revenue that is calculated by dividing the daily issuance value of bitcoin by 365-day moving average of daily issuance value, , shows that miner’s burden is now very close to 0.6. In times of severe correction this ratio usually goes down to 0.6-1.0, meaning that miners receive 60-100% of their last year’s revenues. A drop below 0.6 is quite a rare case and it this happened in January 2015, January 2019 and July 2020. So, any further drop by 10% of this indicator now would bring it below 0.6 and would increase pressure on miners, forcing them to sell more coins.