CoinNess Analysis: Weak Uptrend Of BTC May Lead To Increased Trading Risks

Bitcoin (BTC) is in the stage of correction under the key pressure level of $40,000, with the trading volume shrinking. At present, BTC shows no signs of further rise. Impacted by BTC's trend, major cryptocurrencies are operating sideways, and short-term trading risks increase during the holding period, according to Jins, the in-house crypto analyst at CoinNess.com.

Now, the top major cryptocurrencies are correcting, which is related to the shrinking operation of BTC. After the BTC trading volume fell back on January 30, the trading volume on February 7 contracted again. In other words, it is difficult for BTC to make a breakthrough with the current trading volume.

The adjustment continues and the BTC volatility is not intensified. The current $38,000 level is getting closer and closer to the 30-day and 60-day moving averages. Before deviating from the current cost price, breakthrough may not start until full correction has been made for multiple trading days.

Judging from the current transaction frequency, the rise of major cryptocurrencies will unfold in differentiation. Coins with larger gains will adjust sideways, while cryptocurrencies seeking to supplement the gains will have the opportunity to rise. Prior to the increase of BTC, the leading gains of both ETH and DeFi coins are substantial. BTC enthusiasts should pay attention to trading risks and increase positions cautiously.

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