Bitcoin Has The Only Chance To Activate The Rally: The Analysis
Over the past month, Bitcoin has bogged down in the price range of $9,000 – $9,500. The struggle for new heights continues but has not yet crowned with success. If earlier a lot of cryptanalysts enthusiastically expected a breakthrough, now many of them foresee a failure for the flagship cryptocurrency. Does Bitcoin have a chance to get out of the price trap?
Bitcoin does not give up
Technical indicators of the Bitcoin price movement indicate that the bulls are not in a hurry to help the flagship cryptocurrency. Nevertheless, short-term impulses do not allow Bitcoin change to fall, and get under the control of bears: recently, the price of Bitcoin has increased by $300 to $9,600. But once again, Bitcoin could not hold this position for more than 24 hours, and its price turned down.
The price trap in which Bitcoin located paused trading activity on exchanges. Traders and investors are in no hurry to sell or buy this asset since today it is difficult to determine which direction the price of Bitcoin will go, and when exactly this will happen.
An insurmountable obstacle for Bitcoin is the milestone of $10,000. The flagship cryptocurrency only twice managed to cross this level of resistance. Likely, Bitcoin does not have enough technical strength to hold this price position. As a result, the price slides down and tests support levels in the region for $9,000.
Some analysts categorically look at the current price behavior of Bitcoin. They believe that there is only one scenario in which Bitcoin can hope for a price hike: it is imperative for the flagship cryptocurrency to once overcome the $10,000 mark again and stay there.
Advocating for this concept is Matt Maily, the strategist for Miller Tabak+Co. He noted:
“I do not understand why Bitcoin has not yet taken advantage of a good moment for the price jump amid growing interest in digital currencies from central banks. Bitcoin today needs to go beyond $10,000. Only in this case can a crypto asset soar to new price levels. ”
Why did Bitcoin fall into the price trap?
Analyst Edward Moya named the main reason why the flagship cryptocurrency for the second month in a row cannot make a breakthrough above $10,000. He believes that the sluggishness of Bitcoin is a natural consequence of the halving the reward. After previous halvings, Bitcoin, the crypto asset slowed down the price movement.
Edward Moya convinces that Bitcoin has now entered the accumulation phase. It is evidenced by a decrease in trading activity, both from the side of traders and whales.