Bulls report back
The first attack was successfully fended off: The bulls defy the bears on Wednesday and hoist the Bitcoin over the magic 10000 USD border. Do we now see a new bull run to the 12000 USD mark or is the upward trend merely a small breather? And what are the Altcoins doing? We take a look at the most important events in cryptospace.
Bitcoin over 10000 USD again
At the time of writing, the first mover is trading at a rate of 10235 USD, which is a daily gain of 0.95%. This means that the bulls can not only lift the price above the magic limit, but also above the resistance at 10200 USD. Thus there is a new support line before the psychological 10000 USD mark. Upwards, the next resistances are now at 10400 USD and 10600 USD. Given the high volatility and a 24-hour volume of approx. USD 30 billion, a rapid crossing of these barriers cannot be ruled out.
What is the next step?
In the “August 2020 Bitcoin Volatility Report” Kraken forecasts an increase in volatility. As a result, prices could be driven up. Again and again, traders look at the famous volatility in the crypto market. The term is derived from the Latin word “volatilis” and means something like “flying” or “volatile”. In economics, volatility refers to the standard deviation of changes and is often used as a tool to determine the measure of risk. In the crypto world, volatility serves as an important measure of how the value of an asset changes over time. In theory, a distinction is made between absolute change, relative change and logarithmic change. All three methods are used depending on the circumstances.
Disadvantages of volatility
Of course, the high volatility “gambler” and “high-risk” traders are attracted to the block-chain exchanges. However, it should not be forgotten that volatility can be a great deterrent to risk-averse investors as they seek stability. Fluctuations in the double-digit percentage range are accompanied by advantages and disadvantages. For whales, for example, crypto space is a perfect patch.
What do the Altcoin do?
The alternative assets may recover in places from the downward trend of the past few days. Ethereum (current price: 350 USD) can reverse the fall below the important 300 USD mark and record a daily gain of 1.52%. Polkadot conjures up the best performance from the top 20 on the crypto floor with a daily gain of 3.41%. Currently, DOT ranks 7th in the crypto charts with a market cap of approximately USD 3.9 billion.