Bitcoin has currently recovered a little from its small dip to $8800 in recent times and is now trading around $9200 for a while now. This figure is below the 2-day Moving Average but there is considerable room for a small price uptick to $10k and beyond if a certain barrier is breached, technical analysis shows.
The recent high of $10.3k achieved at the start of June brought a sudden anticipation into the crypto ranks. However, the subsequent sudden dip confused the analysts as many had been predicting a serious price uptick. That never happened and after this latest rejection above the major $10k hurdle, Bitcoin is now apparently slowly dropping in value.
For a while, the premier cryptocurrency of the world stabilized between the $9500-$9900 narrow trading range but now, a lack of positive outlook and a sizeable price uptick has confused buyers and many are looking to wait and see before investing again. The recent drop below $9000 to $8800 was short-lived and the cryptocurrency soon recovered a little to $9200. However, there are several barriers that remain in its path towards sustaining a long-term bullish outlook.
Image source: coinmarketcap.com
According to the latest descending trendline of the last month’s performance of the cryptocurrency, the $9200-$9500 barrier needs to be overcome and convincingly at that too to ensure a smooth sailing towards the next big hurdle: the dreaded $10,000 itself. Whether or not the cryptocurrency surpasses that figure is another analytical goal but for now, the narrow range of $9200-$9500 remains the next target for the bulls. For the bears, they need to cancel any price breakouts or keep them below $9200 for now. The next considerable support is set at $8800 for now.
However, the overall price fluctuations are minimal and the trading activity is low especially considering the new range of gains taxes being pondered over by governments around the world. Bitcoin’s trading history shows that a period of low trading volumes and low volatility is followed by a violent breakout or price tank. This behaviour has been experienced again and again by the community and that is why both buyers and sellers are exercising restraint in fear of being caught on the wrong side of the market.
Overall, the volatility has been extremely low overall during the last month or so and this might be an indicator of long-term positions being added to the system and increasingly popularity of HODLers. However, only time will tell us which way the crypto winds will blow.
image source: pixabay.com