Hesitancy in Bitcoin (BTC) trading could signal the return of ‘good times’, analyst says

Major coins traded lower on Tuesday evening, with the global cryptocurrency market capitalization falling 0.5% to $1.07 trillion at press time.

See also: How to get free crypto

Why is this important: Risky assets were seen in negative territory on Tuesday evening, with two of the biggest cryptocurrencies in the red. The S&P 500 and Nasdaq closed down 0.7% and 0.2% respectively. Their future was largely stable at press time.

Bitcoin’s third consecutive daily decline could be an indication that “recovery momentum is weakening,” wrote Craig Erlamsenior market analyst at OANDA.

Its movement will likely depend “ultimately on inflation”, the Federal Reserve and any worrying news, he said.

“Perhaps the hesitation is a sign that traders are lacking confidence that this is a bottom and the start of good times is coming again.”

Important news that can affect the price of Bitcoin is The exit of Michael Saylor as CEO of MicroStrategy Embedded MSTR – the US company with the largest Bitcoin wallet.

Saylor will continue at MicroStrategy as executive chairman, as he said the change would allow him to focus on the company’s Bitcoin acquisition strategy, while the company’s chairman Phong Le takes over the reins.

The company on Tuesday disclosed an impairment charge of nearly $918 million on its BTC cash reserves during the second quarter, as the price of the apex coin fell during this period.

Visit of the Speaker of the United States House of Representatives Nancy Pelosi in Taiwan is boosting risk aversion, which in turn has supported the dollar index, which was seen up 0.24% intraday to 106.49, at press time.

Trader in cryptocurrency Justin Bennett said cryptocurrency bulls will want the dollar to drop from 105.05 to “expose 103.”

“Tough times for risk assets as long as this is intact,” Bennett said in a tweet.

$DXY is bouncing off the 105 support area I mentioned on Monday.

Today’s low so far is 105.05.#crypto bulls will want to see this channel break down to expose 103.

Tough times for risky assets as long as this is intact. $SPY $BTC $ETH pic.twitter.com/spgHpCGggi

— Justin Bennett (@JustinBennettFX) August 2, 2022

Bitcoin Tests Resistance, Chartist Says Ali Martinez and a “clean close” above $23,530 will allow it to retest the $24,400 supply zone.

#Bitcoins test resistance. A clean close above $23,530 and $BTC will likely retest the $24,400 supply zone.

I’m leaning towards rejection but let’s wait for confirmation. https://t.co/IRHlOtnQQ4

—Ali Martinez (@ali_charts) August 2, 2022

On the Ethereum side, transaction fees have remained “ultra low” even as the price of the second-largest cryptocurrency has risen since mid-June, Santiment said.

#EthereumTransaction fees have remained ultra low despite the surge in prices since mid-June. Scarcity of streaming has played a big role in lowering costs, and fees can be expected to remain reasonable until a certain degree of #FOMO stands out from the crowd. https://t.co/mN3CQOhCo4 pic.twitter.com/t3bCibhWvN

— Santiment (@santimentfeed) August 2, 2022

“The scarcity of streaming has played a big role in lowering costs, and fees can be expected to remain reasonable up to a certain degree of [FOMO] spear from the crowd,” the market intelligence platform said in a tweet.

At press time, the average Ethereum transaction fee stands at $0.0014 or $2.28, according to data from BitInfoCharts.

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