Decentral Block Post

Bitcoin’s (BTC) rebound off $28,701 on Aug. 7 shows that lower levels continue to attract buyers. The recovery has kept the price stuck inside the range as traders await the start of a new trending move. A recent report by ARK Invest said that “Bitcoin’s volatility dropped to a 6-year low during July.” 

Traders who expected a strong move in either direction have been disappointed by the ongoing range-bound action in August. If history repeats itself, then August and September may turn out to be washout months as their average moves have been 0.73% and -5.01% respectively.

Although the short-term is uncertain, the long-term continues to look attractive. Galaxy Digital CEO Mike Novogratz, citing sources at BlackRock and Invesco, said that the first spot Bitcoin exchange-traded fund in the United States may be approved by the Securities and Exchange Commission in “four to six months.”

Such a move is expected to be hugely positive for the crypto space. In the meantime, let’s look at the important resistance levels to watch out for in Bitcoin and altcoins. Could bulls overcome the roadblock? Let’s study the charts of the top-10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin’s strong relief rally from the $28,861 support shows that the bulls have not yet given up and they continue to view the dips as a buying opportunity.

In the most recent episode of The Market Report, analyst and writer Marcel Pechman delves into the topic of crypto exchange Binance’s proof-of-reserves. This report reveals a significant decline in USD Coin (USDC) balances, plummeting from $3.4 billion on March 1 to a mere $23.9 million by May 1. 

According to insights from on-chain analyst Aleksandar Djakovic, this decline signifies that Binance utilized the $3.4 billion to procure 100,000 Bitcoin (BTC) and 550,000 Ether (ETH) during that period, totaling approximately $3.5 billion. The central question, as posed by Pechman, revolves around whether this investment was initiated by Binance users, thereby distancing Binance CEO Changpeng Zhao and the company from direct involvement.

Pechman disagrees with this conjecture, although he does acknowledge the possibility of the exchange accessing a portion of its USDC reserved for margin or derivatives trades. Nevertheless, he finds the notion of depleting the entire balance without client awareness or impacting the exchange’s day-to-day functions implausible.

Transitioning to the next segment of the show, Pechman delves into PayPal’s imminent launch of a stablecoin, announced on Aug. 7. This stablecoin, issued by Paxos Trust and built on the Ethereum blockchain, bears striking similarities to USDC and Paxos USD (USDP). Yet, Pechman highlights a distinguishing factor in the integration of the stablecoin with PayPal and Venmo.

Ultimately, Pechman concludes that there is no discernible benefit for end users in adopting this new stablecoin. Other stablecoins, he points out, offer both yield and a more extensive presence in the decentralized applications market.