BigONE’s Analysis of the Current Market Trends in Cryptocurrency
Recently, Uncle Rich’s analysis on Tradingview has become increasingly accurate, and many small partners in the BigONE group have followed suit. The entire cryptocurrency market has also reached a seemingly more rational stage. On August 17, when all currencies fell, the Polkadot token DOT and Solana’s SOL maintained an upward trend of more than 15%, which surprised retail investors, but they both fell back on August 18, showing 10% gains. A drop of about 1% indicates that the Bitcoin trend continues to dominate the market. Even if there is a temporary counter-trend phenomenon, other currencies will eventually be ‘corrected’. This should be seen as a positive occurrence, indicating that overall, the trend is still normal.
According to address monitoring data, some whale accounts’ Bitcoin holdings are declining, dropping to around 20% last week, implying that when the currency price was at its peak last week, the whale accounts sold some of their holdings, and arbitrage traders also exited the market. As a result, there was insufficient momentum and too much pressure on Bitcoin to break through the $48,000 barrier.
In the current week, crypto address monitoring shows that whale accounts’ Bitcoin holdings have increased compared to last week, but only by about 10%, indicating that while whale accounts are accumulating at low points, most of them are accumulating at high points. To summarize, the market has not successfully retraced to support levels.
However, don’t be too concerned about these whale account data. According to reports, except for a few whale accounts, accounts with 100–10,000 bitcoins have not sold Bitcoins recently. These addresses collectively hold 9.23 million BTC. In comparison, the number of Bitcoins reserved on derivatives exchanges has fallen significantly, to 1.25 million bitcoins, the lowest level since May 11.
As a result, the entire Bitcoin bargaining chip structure is still in good shape. Whale accounts continue to attract funds, and ordinary large investors maintain strong positions in them, while retail investors have their own priorities for ‘buying bottoms’ based on market conditions.
Furthermore, many people believe that Ethereum (ETH) will outperform BTC in terms of popularity. However, this appears to be somewhat of a remote possibility. Even though ETH is very popular in some countries, such as Singapore, where 78% of investors hold Ethereum, and 69% hold Bitcoin. Overall, though, based on data from the entire chain, there are far more addresses holding Bitcoin than Ethereum.
It is undeniable that Ethereum’s future is still very bright. It has grown in strength since the recent hard fork of Ethereum London, including a new fee reduction feature called EIP 1559, and ETH has begun to be burnt. More than 28,000 ETH have been destroyed and counting, representing 36% of all ETH issued. This essentially means that the ETH inflation rate has decreased from 4.2% to 3%.
Ethereum has the unique feature of scarcity, but it is still a long way from Bitcoin.
After discussing Ethereum, I’ll return to the currency market. At the moment, BTC at $48,000 remains a significant barrier. The price hasn’t been exceeded, but it hasn’t dropped too far either. That demonstrates BTC demand remains strong, and retail investors still believe that the bull market will continue.
As long as the confidence in a bull market remains, you won’t have many chances to get behind the wheel. According to Uncle Rich’s recent analysis, if the market does not produce too much correction, for example, if the market falls below $39,000 in one go, then we can still expect BTC to reach $100,000.
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.