With all the continuous falling, Bitcoin(BTC) has again reminded us of its unpredictability and jumped by approximately five percent in less than an hour. Trading at roughly $7,100 in the morning, Bitcoin witnessed a spike that saw its price rise by over $300.
And yet, it appears the bulls are not making a valid and full appearance as of late. Bitcoin is roughly ten percent away from a solid buying mark should the bear sentiment remain as it is, though some analysts believe stronger (and renewed) sentiment will appear if bitcoin drops back into the $6,000 range. Currently, resistance is not being witnessed in bitcoin’s charts until the $7,600 and then $8,000 respectively.
Yet, it appears the bulls are not very stable and legitimate as of late. Bitcoin(BTC) is roughly 10% away from a solid buying mark, should the bear sentiment stay the same. Some analysts believe stronger (and renewed) sentiment will surface if Bitcoin drops back into the $6,000 range. Currently, resistance is not being witnessed in Bitcoin’s charts.
It is believed that the risk of falling to $6,900 continues, till recovery comes in the offing. Charts on Sunday show a doji candle, signalling an interim reduction in bear activity.
The sudden jump to $7,400 suggests that a corrective rally remains obscure, and the bulls will need to defend the $6,900 key support level with all their might. Without that, Bitcoin runs the risk of falling to as low as $5,000 in the coming weeks.
The inevitable halvening of mining reward in 2020 is also another factor that is keeping the public wary. (Read what the halvening is and why it matters here)
Ultimately, the first ones to be affected by the halvening will be the BTC miners. Anyway, once all 21 million of the coins are extracted and accounted for, these miners will be relying on transaction fees only as their primary form(s) of income.
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