Bitcoin still stumbles to hold the $10,000 level

Bitcoin once again breaks the hearts of those hoping not to see it below $10,000, the price trend of the past few days is like a roller coaster, the crypto market is experiencing extremely high volatility, and the more hopes in the media for an eventual market reversal to new highs are Cryptocurrencies are more volatile, Bitcoin lost in one day towards 5% and is currently trading near the $9,600 level.

Bitcoin has vehemently refused to hold the $10,000 level for the third time in the past two weeks, and each time the coin reaches below that level traders expect it to struggle to recover and reach $10,000 in the near future as the momentum slows.

It was completely unexpected to see that trading volumes XM Arabia Remaining relatively stable after a sharp drop, it is worth noting that the current rate of about $45 billion per day hardly corresponds to the price range of $9,500-10,500, in which Bitcoin has been pegged for some time.

We have several consecutive failed attempts to cross $10,000, so we can say that the rule of “what doesn’t grow will have to fall” will work now. “Fear” which is in line with what is happening in the crypto market.



Why did Bitcoin fall despite the important halving event?

After initially rising above $10,500, bitcoin price has not shown any strong sign of a bull market continuation, and despite attempts to push the market higher with fake buy orders at key support levels, bitcoin has stumbled at $10,000 every time it tested it since February 11. February.

This may indicate that the total period from $8,000 to $10,500 was primarily driven by margin trading platforms such as BitMEX and Binance Futures, and that the coin has not seen enough volume and momentum to consolidate.

In recent weeks and especially after the strong performance of bitcoin from last year, traders have been expecting the currency to test higher resistance levels such as $10,900 and $11,500.

Much of the optimism was driven by the positive sentiment around the upcoming Bitcoin reward halving, and in late April the blockchain network will see Bitcoin miners halving rewards, reducing its new mining rate by 50%.

In theory the halving should be a positive factor for the price of bitcoin considering that the main value of bitcoin is its scarcity and the halving event directly affects this.

But historical data indicates that the price of Bitcoin tends to fall before the halving occurs, after the halving occurs the re-accumulation phase begins and Bitcoin tends to rise after 12 months.

For example: in July 2016, the price of bitcoin dropped by about 30% after the halving, and bitcoin did not continue to rise until nearly ten months after the halving occurred.


Mohamed Abdel Khaleq

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