- Bitcoin price has hovered below $6200 for several days
- Flat price partly caused by the presence of liquidation clusters
- Low presence of retail investors is another factor
For the past several days, the price of Bitcoin has been flat. On August 21, the price recovered by 3.62% but now faces some resistance. This resistance has been around since this week, and now the coin is trading at $60,509, which is up 1.38%. The market cap is also up 1.42% at $1.2 trillion, while the 24-hour trading volume is up 33.19% at $34.6 billion, according to Coinmarketcap data.
Bitcoin 7-day price movement. Source: Coinmarketcap
Bitcoin is the largest and most influential coin in the crypto market, so any drag or movement affects the entire market. Over the past day, the global crypto market cap has been up 1.54% to $2.14 trillion. The total crypto market volume over the last 24 hours is $69.62 billion, which is an 18.21% increase. The total volume in DeFi is currently $4.44 billion, or 6.37% of the total crypto market 24-hour volume, while the volume of all stablecoins is now $64.39 billion, which is 92.49% of the total crypto market 24-hour volume.
Why is the price of Bitcoin stuck?
Now the critical question is: why is there resistance? Why is Bitcoin price stuck? According to analysts, the resistance is a sign of stability, but why has the stability not been above $62,000?
Experts say one reason for the resistance is the presence of liquidation clusters.
Bitcoin liquidation heat map. Source: Coinglass via Cointelegraph
During the previous week, Bitcoin liquidation levels above $60,000 and below $58,000 were very dense, which may have dictated the sideways movement. Nevertheless, since $40 million was liquidated in the last day, a large number of these clusters have been tagged.
Going forward, the price range for the immediate liquidation cluster is $61,500 to $62,500. Once the price falls outside of this range, over $300 million will be liquidated, according to market analyst Biraajmaan Tamuly. He added that another bearish blowout could result in BTC failing to hold above $60,000. This would allow for the possibility of a second cluster range retest at $58,500, or $180 million in liquidation.
Bitcoin Retail Investor demand 30-day change. Source: Cryptoquant via Cointelegraph
Another factor is the low presence of retail investors. A crucial factor determining a long-term bullish surge is the existence of individual investors. Data indicates that since May 2024, demand for Bitcoin among retail investors has gradually decreased.
Another crucial factor is the funding rate, which is neutral, Tamuly says. Right now, the Bitcoin open-interest weighted funding rate is 0.0037%, which is regarded as neutral.
Coinglass data shows that the funding rate was almost zero percent the previous week. When neither long nor short traders hold a dominant position, the funding rate is neutral, Tamuly.
Ghana sets new rules for crypto exchanges
Meanwhile, TheRadar earlier reported that the Bank of Ghana (BoG) has unveiled proposed new regulations for cryptocurrencies, crypto exchanges and other digital assets in the country.
The bank announced the new draft on August 16, stating that it was open to receiving feedback from the public, industry stakeholders and crypto enthusiasts to fine-tune it before unveiling the entire regulation.
The draft came after the bank spent about three years reviewing Bitcoin, stablecoin USDT and other cryptocurrencies.
