Bitcoin Price Consolidating, is a Big Move About to Happen?
Bitcoin price continues to look bearish, yet activity and investing interest continues to grow. Analysts are optimistic about the market recovering continuing, but when will the bulls return?
MARCH SEES SLIGHT BITCOIN PRICE GAIN
Bitcoin began a correction on February 20th, which frustrated many investors hoping to see it remain above USD $10k. Nevertheless, the price has slowly moved up since the beginning of March. The flagship cryptocurrency is now up two percent for the month.
Analyst DonAlt predicts that Bitcoin is clearly at a crossroads for the near term, but the overall indicators still suggest upward price movement.
So far so good.
Tightened risk a little bit, if the much sought out $9500 level hits I think we go higher, not lower.
Today's weekly close will be interesting if we close below $8750 BTC will have had bearish retests on the monthly, weekly, 3d and daily timeframe. pic.twitter.com/1qZN2iXDti
— DonAlt (@CryptoDonAlt) March 8, 2020
A key takeaway from present technicals is the fact that the Bitcoin price is far less volatile than it was during February. This type of price consolidation generally results in a notable movement. Also, the current market conditions mirror those of previous years, when prices began to increase about March and continued through July.
It is also worth noting that interest in altcoins continues to grow, as many investors are taking this opportunity to accumulate. Ethereum, for example, has performed far better than Bitcoin over the past several days, notwithstanding a correction over the past twenty-four hours. Thus, the overall mood remains very positive.
ANCILLARY FACTORS WILL IMPACT MARKET
Recent news related to use and adoption has been positive, which has clearly had an impact on market activity. India’s Supreme Court ruling in favor of crypto and banking caused prices to jump, if only temporarily. It will have a long-term impact as well.
A significant uptick in network activity can also be seen across many blockchain platforms. Bitcoin mining is at an all-time high, and the number of transactions moving across the Bitcoin network also increases by the day. Overall blockchain network activity is substantially higher than it was even one year ago.
An increase in real-world usage is also taking place. Ripple now moves more fiat across its network than Paypal, and VeChain continues to bring major players into its ecosystem. Whereas crypto remains little used as a currency, more merchants than ever are taking steps to accept it.
Looming over all market analysis is the impending Bitcoin block halving. All analysts agree that by reducing the Bitcoin supply the price is likely to move higher. The halving’s impact on the overall crypto space cannot be known, but it is hard to see a downside.
Although a short term price recovery is far from certain, there is thus little doubt that Bitcoin’s sideways movement will soon come to an end. Moving higher will clearly add to the growing evidence that a bull market has begun.
Do you think Bitcoin price will recover soon? Add your thoughts below!
Images via Shutterstock, Twitter @CryptoDonAlt