Over the past ten trading days, the bitcoin has traded in a narrow range around $9,500 levels, as investors do not want to rush to buy or sell the cryptocurrency in light of their caution and anticipation of new catalysts in the markets that may push them to buy or sell it.
If Bitcoin caniq option company Holding above the $9,400 level will increase the chances of additional buying, and if it fails to do so, it is expected that it will decline to the $9,000 level and then to the $8,750 level.
During today's trading, volatility dominated the famous currency, as it recorded a decline despite its rise for a period early in today's trading, market experts believe that the expiration of Bitcoin options, which amount to one billion dollars, is the reason for the current decline, and the panic over a possible second wave of the Corona virus That swept the markets forced investors to sell gold as well as the cryptocurrency sometimes referred to as digital gold.
Corona virus cases are increasing worldwide as countries reopen their economies, and this increases the risk of a second wave that could slow the current recovery in major markets. Central banks pump more cash into the markets.
Since the end of March, Bitcoin has risen by 58% from $6,580 to $10,400 after the first stimulus package was signed.
The repeated failure of more than a month and a half to make new highs and break through the $10,000 level hard has made crypto lovers tired and some may lose confidence, but it also points to the currency's violent resistance against the bearish trading pattern.
Long-term Bitcoin price predictions
Analysts believe that Bitcoin will take an uptrend in the long-term, and the next movement of Bitcoin is likely to be big and lower in the short-term for several reasons:
Bitcoin miners have withdrawn the largest number of cryptocurrencies from their wallets to exchanges in over a year.
Institutions Still Bearish on Cryptocurrencies According to Data CME.
The buying activity on the Bitfinex exchange is around the $8,500-9000 level, which means that there is less potential for Bitcoin to rebound when it reaches this level.
Bitcoin is expected to drop by 25% to reach the $7000 level.
Recently, the correlation between Bitcoin volatility and what is happening in the traditional market has been very strong, and the influence of institutional investors is increasingly strong. As of June 2020, about 18.6 million Bitcoins have been mined, and approximately 60% of this Bitcoin belongs to institutional investors and considers it Long term investment and about 20% are considered lost because they have been immobile for more than 5 years.
There are still 3.5 million coins in circulation that are used in trading retail investors account for 96% of transactions.