Bitcoin price falls to new low, with a breakout expected in September
Bitcoin prices have recently fallen to new lows, but analysts expect a breakthrough in September. Well-known analyst Rekt Capital said on July 30 that Bitcoin is still expected to break through in September. If the price can regain the $65,000 support level, it is expected to rise further, even to $70,000 or higher. Independent analyst Jelle also predicted that Bitcoin may reverse and break through $100,000 in the next few months.
Bollinger Bands indicator signals a breakout
Analyst Matthew Hyland noted that the tightening of the weekly Bollinger Bands indicator indicates that a major breakout is imminent. Bitcoin has been consolidating in a narrow 25% range since March 13, and he believes that this long consolidation period is nearing its end. The Bollinger Band Width (BBW) indicator is at its third tightest level in history, supporting the view that Bitcoin could break out of consolidation. If history repeats itself, the price of Bitcoin could reach an all-time high of $77,000 by November. Hyland believes that Bitcoin is about to see "explosive growth."
Market opinions diverge
Cryptocurrency trader Mikybull expects Bitcoin to usher in a new round of gains, possibly breaking through $120,000. However, analyst Mags believes that the next major milestone for Bitcoin could be $95,700. The increase in new Bitcoin investors also fueled bullish sentiment, with the market adding 3% of new investors from the $57,000 level. As prices rise, the top of the cycle could exceed 50%.
Despite different opinions in the market, the future trend of Bitcoin has still attracted widespread attention and expectations.
Ethereum ETF faces redemption pressure, and the scale of on-chain pledge rebounds
Affected by the liquidity overflow of US stocks, the US SEC prohibited ETF fund managers from pledging ETH, resulting in a spread of about 4% between ETH spot and ETH ETF, and a large number of redemptions at the opening. Coinglass and OKlink data show that ETH ETF was redeemed continuously from July 24 to July 31, while the scale of on-chain pledges increased. As long as physical ETH cannot be used for pledge, the growth of ETH ETF scale will be limited.
Ethereum on-chain activity declines, but long-term prospects remain positive
Although Ethereum's GAS fees, number of active addresses and transaction volume have dropped significantly compared to 2021, the current bull market has increased by 365%, which is comparable to Bitcoin. Veteran investors view Ethereum as a cyclical asset and adopt a counter-cyclical position building strategy, that is, buying when the price-to-earnings ratio and price-to-sales ratio are the highest and selling when they are the lowest.
Ethereum’s Dominance in the POS Sector
Despite the rise of new public chains, Ethereum still dominates the POS field:
1. **Layer2 Ecosystem Support**: Ethereum achieves expansion through Layer2, maintains a high degree of decentralization, and has higher network security than other public chains.
2. **Ecosystem Advantage**: According to Deflama data, the total locked value (TVL) of the Ethereum ecosystem is US$100 billion, and the TVL to market value ratio is 0.28, while the TVL of the Solana ecosystem is US$7 billion, and the TVL to market value ratio is only 0.0875.
Investment advice and market expectations
Taking into account the growth potential and competitive advantages of Ethereum, buying ETH at the current price still has the potential to make profits in the next 2-3 years. Bitcoin's short-term short momentum is weakening, and it is expected to bottom out and rebound in the near future, but we need to be wary that the rise may be a trap for buying before the peak.
Overall, although the market has different views on the prospects of Bitcoin $BTC and Ethereum $ETH , both are likely to experience significant price fluctuations in the coming months. Investors need to pay close attention to market dynamics and adjust investment strategies in a timely manner.
