Bitcoin lacks bullish momentum to stay stable around $10,500 range

The Bitcoin price movement has created significant fears among investors, as analysts and traders widely expect that it will see a drop in the near term, this fear is clearly visible if we look at the Bitcoin funding rates which are very negative at the moment.

Much of the investors' concerns boil down to the recent news-based weakness, as well as the negative developments surrounding BitMEX, along with the overall instability in the traditional markets driving Bitcoin to the downside.

However, the strength of the assets in the face of these developments is a positive sign that may indicate that a bullish trend is imminent.

During yesterday's trading, Bitcoin failed to hold gains and crossed the $10,800 resistance level and started declining again to reach below $10,500, but rebounded quickly and is currently trading above $10,600, but it is still at risk of further losses, as the currency lacks bullish momentum.

Bitcoin has spent the past few weeks in a consolidation pattern after hitting highs at $12,500, while short-term price expectations look disappointing to analysts, others say network fundamentals and long-term behavior are as bullish as ever.

Bitcoin

As of October 1, 2020, bitcoin has closed above the $10,000 price range for 66 days in a row, the last time the coin saw the price stay above $10,000 in a row was on December 1, 2017, when it hit a 62-day record.

Bitcoin overall trend remains positive

Since the coin peaked in late August, its price has seen a sharp drop that has brought it down to $9,800, at its worst, Bitcoin is trading down more than 21% from this year's high.

Despite this short-term weakness, analysts remain convinced that the long-term trend of the cryptocurrency remains positive.

One Bitcoin analyst reported that Cryptocurrency The leader is still about to become “the future,” pointing to a series of macroeconomic trends, which reflect that while the cryptocurrency may be weak in price, its intrinsic value increases as traditional economies look weak.

He adds that macroeconomic trends and geopolitical tensions make it clear that the need for bitcoin is greater than ever.

The US is currently at a point in time when it needs to continue printing money en masse due to macroeconomic trends, resulting in a potential dollar shortage globally, which may explain why there are no “real” inflationary trends yet.

It also lives in this stalemate due to the inability to let the stock market go down, the harmful effects of lower interest rates on the economy, and many other trends.

Bitcoin is a natural solution in a world where fiat money is constantly weakened by central actors.

Mohamed Abdel Khaleq
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