Bitcoin trades weakly on fading positive news

BTC, Maintaining the Same Price Level as Previous Day at $114,000
Altcoins Show Strong Trend Following ETH's Rise
Expert: "BTC May Experience Further Decline Based on Historical Patterns"

The cryptocurrency market, including Bitcoin (BTC), continued a weak trend on the 5th without significant positive factors.

The cryptocurrency market, which had rebounded on previous day's low-price buying, slightly declined as market-boosting factors disappeared. Bitcoin maintained the $114,000 level, while altcoins showed a slight increase.

Particularly, Ethereum (ETH) recorded over a 3% rise, leading the altcoin surge.

The reasons for Ethereum's rise include institutional Ethereum accumulation and healthy on-chain signals. Foreign AI Invest reported that Ethereum's centralized exchange (CEX) supply hit a two-year low, with Ethereum holders focusing more on accumulation than selling. Currently, about 22.8 million Ethereum are held in hard wallets.

According to financial data platform SoSoValue's data on the 3rd, the trading volume of Ethereum spot ETF in the US in July was $123.5 billion.

◇Bitcoin = At 4 PM on the 5th, Bitcoin price on Upbit was 159,820,000 won. Bitcoin dominance was 61.60%.

According to on-chain analysis platform Sigbit, the long and short betting ratio in the Bitcoin futures market was 58.89% and 41.11%, respectively.

Analysis suggests Bitcoin could experience further decline based on past precedents. This is based on the tendency for Bitcoin to typically decline in August.

MatrixPort stated, "Bitcoin generally shows a weak trend in August every year" and "Recently announced US employment indicators have increased macroeconomic uncertainty, which is key to this decline." They also believe that risk assets, including Bitcoin, may continue to show weakness until clear fundamental market recovery appears.

◇Rising Coins = At 4 PM on the 5th on Upbit, Gas (GAS) recorded the largest increase, rising by about 7%.

Gas is a 'satellite' coin of Neo, serving as the native token of the Neo blockchain. Neo is called the 'Chinese Ethereum' and holds a 'DeFi platform' capable of performing smart contracts. Every Block in the Neo blockchain generates a certain amount of gas, which is used as fees for implementing and operating Neo smart contracts.

◇Fear and Greed Index = The digital asset Fear-Greed index provided by Alternative is at 60 points, entering the 'Greed' stage. The greed stage is characterized by increased price volatility and trading volume. There's a high possibility of short-term peak formation, so caution is advised when selling.

The cryptocurrency Relative Strength Index (RSI) provided by Sigbit recorded 45.9, indicating a 'neutral' state. RSI measures the relative strength between upward and downward price pressures and indicates overbought and oversold levels for a specific asset.

Reporter Seung-won Kwon ksw@blockstreet.co.kr