After a slight recovery in the cryptocurrency market, a retest of the local minimum appears to be on the horizon. The more speedy market participants took advantage of Bitcoin's fall below $20,000, but the bargains didn't make them more confident in the future. This has resulted in the bearish sentiment in the market.

In July, whales (>10,000 BTC) and shrimps (<1 BTC) were the main investment forces that helped drive the price above $20,000. But by August, the whales were back to selling off their assets, and the shrimps had lost their mojo.

Whales can also include institutional investors who perform transactions through cryptocurrency funds. In the first week of August, inflows came to a stop, and in the second week, Bitcoin investment products saw $21 million in outflows.

One of the key signs of future price growth is an increase in network activity and the emergence of new addresses. The average monthly number of new addresses is lower than average for the year, which confirms that investment activity is low and a bullish trend is unlikely.

The weakness of Bitcoin's recent rise to $25,000 and the ongoing strength of the bears also points to the continued decline in trader activity with transaction volumes below $10,000. This group could be described as retail investors, subject to greed and fear. In a bull market, FOMO (fear of missing out) grips them, while in a bear one, they fear a possible catastrophe.

The main reason for the decline in the cryptocurrency market is the ongoing series of bankruptcies of weak projects and the anticipation that the Federal Reserve will further tighten monetary policy. 

Fed symposium in Jackson Hole to be held on 25-27 August. At the event, the financial community expects Jerome Powell to confirm the regulator's intention to more quickly shrink its balance sheet and to outline its plans to further raise the key rate to fight inflation. Investor anxiety is being felt in the financial markets: both the cryptocurrency and US stock market is down.

StormGain analytics team 
(a platform to trade, exchange and store cryptocurrency)