Bitcoin Is Preparing For An Uptrend: What Factors Confirm This?
In the past few weeks, inside the crypto space, it
In the past few weeks, inside the crypto space, it has been believed that the bears have fallen asleep and are not ready to pull Bitcoin out of the price trap of $9,000 – $9,500. But some of the cryptanalysts see long-term consolidation as preparing for a strong forward movement. What aspects testify to this?
Long consolidation phase ends
For 9 weeks now, Bitcoin has been demonstrating paradoxical stability, since it is consolidating within the price region just above $ 9,000. At the time of writing, the price of Bitcoin is $ 9,260. Thus over the past 24 hours, the price of Bitcoin has rolled back a little more than $40 back.
Today, the market behavior of the flagship cryptocurrency remains controversial. On the one hand, buyers are interested in maintaining this Bitcoin exchange rate, as they have pulled up the flagship crypt several times after falling to the level of $8,800. On the other hand, the absence of a significant breakthrough leads to mixed forecasts.
Some cryptanalysts are sure that the two-month consolidation of Bitcoin in the region of $9,000-9,500 is preparation for a strong move forward. Earlier, a similar model of market behavior has already been seeing behind the flagship cryptocurrency, so traders remain hopeful that this scenario will be realized shortly.
What is the catalyst for bulls?
There are several factors that analysts believe can wake the bulls and stimulate the Bitcoin rally. Firstly, over the past month, an increase in open interest in Bitcoin has been recorded. At leading exchanges, open Bitcoin positions valued at $3.3 billion. One of the analysts commented on the situation on crypto exchanges:
“Bitcoin is still flirting with an open interest of $3.3 billion. But until we see if Bitcoin is ready for a breakthrough to meet the expectations of large crypto players. ”
Also, a possible breakdown of the current consolidation in favor of the bulls is evidenced by the outflow of Bitcoin from the main crypto exchanges. Today, most investors follow the Bitcoin retention strategy. As a result, trading activity on crypto platforms has sharply decreased. Large participants in the cryptocurrency market expect Bitcoin to see a rapid price movement after its long consolidation.
To heat bullish impulses, Bitcoin needs to overcome the $9,300 milestone and hold onto that position. Today, the flagship cryptocurrency is as close as possible to this resistance level. But given the sluggish price movement of Bitcoin in June and this mark is a relatively difficult task.
If Bitcoin can cross the line of $9,300, the next step may be a breakdown of this price region and a sharp bullish movement forward. Cryptanalysts convinced that this will happen in the coming weeks.