Bitcoin in the past six weeks has barely moved 2% in either direction from its average price so it may appear to some that it is a stable coin now, the coin continues to trade around the $9,000 level after weeks of stagnation, and its total market capitalization is around $169 billion.
After rising from $4,000 to $10,000 between March and May, the largest cryptocurrency is suffering XM Arabia One of the least volatile periods of price action in its 11-year history, as the price was confined to a narrow range below $10,000.
Bitcoin has repeatedly tried to break the $10,000 level but each time it fails to break it, indicating the lack of strong bullish momentum, which could lead to a pullback in the price over the coming weeks.
Bitcoin is moving like the beginning of a year 2017
Bitcoin is experiencing significant sideways moves between frustrating buying and selling, trading in the $9,000 level, though this long period of almost stable price is similar to the beginning of 2017, when Bitcoin was trading in the $900 range and has been holding on to that The price over the three months of the year was followed by a rocket spike of 300% in the second quarter, and it continued its advance until it reached an all-time high in mid-December 2017 near the $20,000 price.
The question on many people’s minds now is can bitcoin currently mimic what happened at the beginning of 2017 even though we are halfway past, or is bitcoin’s rally simply over and waiting to fall.
The first quarter of this year was devastating for Bitcoin because it incurred huge losses and fell to the $3800 level in mid-March, but it managed to recover almost all of its losses in the second quarter.
It was the savvy investors who seized the opportunity of Bitcoin’s fall and bought it at its low price, and indeed they achieved huge investment returns of about 180%.
Analysts believe that Bitcoin is entering a very fierce battle to face the bear market that is trying to impose its control, especially after the big gains it achieved in the second quarter, so they expect the Bitcoin to decline for a short period and then re-rise strongly, setting new records.
There are many reasons that may be a means of pressure on Bitcoin, including the decline in global stock markets, as the correlation coefficient between the largest cryptocurrency in the world and the stock market rose significantly to record levels in recent periods.
As a result of the rising fears in the stock markets related to the Corona virus and geopolitical tensions between the US and China, the stock markets are negatively affected, which may cast a shadow on the Bitcoin prices.
Another reason was the massive selling of bitcoins by miners after the halving event that halved the value of the equivalent bitcoin, where the Bitfinex exchange announced the largest influx of bitcoin miners to exchanges in over a year totaling about 2,650 bitcoins.
At the same time, many are still bullish on Bitcoin prices in the second half of this year, as even if the coin drops to $8000 levels, this is evidence that it is on track to test the $14,000 level by the end of the year.