• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
Bitcoin

Short-Term Traders Responsible for Ranging Bitcoin Price, Says Analyst

Ricardo Esteves by Ricardo Esteves
5 years ago
in Bitcoin
Reading Time: 2 mins read

As the price of Bitcoin remains stuck between $5,500 and $8,500 for three months now, the Bitcoin trading community wonders when the spell will break and in which direction.

Kevin Lu, the director of quantitative research at Element Digital Asset Management, a full-service advisor for the digital asset economy, said the Bitcoin market is in a reflexive state and its range trading is due to being dominated by short-term market participants.

Boring Bitcoin Market Stuck Between Day Traders and Lack of Narrative

Bitcoin has been challenging the $7,000 handle since Tuesday, but a definitive break above it hasn’t been on the cards as of yet.

The trading of the number one cryptocurrency in the market, with 53.4% dominance according to CoinMarketCap, has become boring. That opinion has been shared since late April 2018 as DataTrek expert Nicholas Colas said “it needs a new narrative”.

As August comes to an end and the trading industry returns from summer holidays, Bitcoin traders grow anxious as the market remains stable following one of the most volatile price fluctuations seen in history. This has pushed the cryptocurrency to the $20,000 area and the Bitcoin market to over $330 billion in value.

Behind the still waters is the dominance of short-term traders, wrote Thejas Nalval, portfolio director, and Kevin Lu, director of quantitative research at Element Digital Asset Management.

“Within our own team, we tend to believe the market is in an ultra reflexive state currently. It moves within a range in response to seemingly every bit of news […] This is likely the result of trading having been dominated by short-term players that are using structured derivative vehicles with leverage to express intraday speculation.”

Nalval’s report compared Bitcoin trading to Brick Breaker, a video game in which the player must smash a wall of bricks by deflecting a bouncing ball with a paddle.

While day traders could be responsible for the ranging market Bitcoin is stuck in, the cryptocurrency may need something big to reactivate the long-term trend. Sam Doctor, a data analyst at New York-based Fundstrat, argued that, as an effective hedge of the financial markets, Bitcoin may prove itself when other markets start to fall.

“One of the reasons to own cryptocurrencies is because they are an effective hedge. Until something happens to disprove that thesis, you aren’t looking to sell them so long as other asset classes are falling.”

The cryptocurrency market is printing gains on Friday, with Bitcoin trading +1.15% higher (24-hour change), according to CoinMarketCap.

Featured image from Shutterstock.
Tags: bitcoinbitcoin pricebitcoin tradingdatatrekelementFundstratkevin lunicholas colasthejas nalval
Tweet123Share196ShareSend
Ricardo Esteves

Ricardo Esteves

Related Posts

Bitcoin (BTC)

Traders Act Fast As Binance Australia Unveils Bitcoin Discount For Limited Period

5 days ago
Bitcoin (BTC)

No All-Time High For Bitcoin In 2023, Former BitMEX Head Arthur Hayes Predicts

6 days ago
Bitcoin

Bitcoin Shows Recovery: Did This Historical Line Act As Support Again?

6 days ago
Bitcoin Core

Bitcoin Core 25.0 Hits The Market: A Sneak Peek Into The Future

6 days ago
Bitcoin (BTC)

JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000, Here’s Why

1 week ago
Bitcoin

Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting?

1 week ago

Premium Partners

Play Finance

Now Trending

  • Potential 20x+ Crypto Presales 2023

    4 days ago
  • Willing to buy new crypto: Here are the best 10...

    4 days ago
  • Best Crypto Meme Coin Presales in 2023

    4 days ago

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • According to experienced traders, Aave (AAVE) and InQubeta...

    1 hour ago
  • Avalanche price at important support level, Quant price to...

    3 hours ago
  • Looking for the next Crypto That Could 100x? Check...

    3 hours ago
  • Tradecurve (TCRV) Presale Bonus Attracts More Investors As...

    3 hours ago
  • XRP and Big Eyes Coin (BIG): Riding the FOMO Wave in the...

    3 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2023 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.