Bitcoin trading took place in a narrow range this week and turned out to be a relief for traders. The year had a volatile start and there was little movement for the cryptocurrency. It experienced a slight rise in trading of 3% over the last few days. Traders are still cautious even though the price bounced off $40,000 earlier in the week.
Price swings are taking place on very narrow volumes resulting in amplified price movements, according to a Hong Kong-based platform, Q9 Capital. No fresh capital has been introduced to the market and no willingness to buy or sell.
Analysts are worried about Ether prices declining as well. Ethereum is the second-largest crypto by capitalization volume after bitcoin. If the momentum continues to stall or stop, ETH prices could be in the range of $1300 to $1700, 50% lower than current prices.
One good thing is that not all cryptos are showing signs of a slowdown. NFT trading is on the rise. OpenSea, a large marketplace for non-fungible tokens, is expected to touch $6 billion in transactions by the end of January 2022. Doge values also rose by ca. 14% on Friday after Tesla started accepting cryptocurrency from buyers for their merchandise.
All in all, investors are still holding onto their bitcoin investments even though selling has been rampant. The fact that long-term holdings are still being maintained is indicative of a positive outlook for bitcoin and its prices.
