Bitcoin was aiming at $20,000 for past few days but failed to break through
Bitcoin remains suppressed as traders and investors are not yet ready to push the price of the first cryptocurrency above the $20,000 range that the majority of bulls are thus anticipating. Although Bitcoin is still struggling to break above the resistance level, it is still too early to say that it is “dead”.
According to the daily chart of the digital gold, Bitcoin is currently moving under the 21-day moving average, which acts as a barrier between assets that remain under heavy pressure by the market and those who are trying to enter the reversal rally.
Consolidation as the foreseeable future for Bitcoin
Unfortunately, the net flow on exchanges, volume patterns, and cryptocurrency volatility suggest that traders and investors are not yet ready to push the price of Bitcoin one way or the other.
Compared to massive bullruns, it is significantly harder to make money during consolidation periods, but “healthy markets” often enter a prolonged consolidation period after volatility spikes as those periods are also known as “cooldowns.”
In 2018, Bitcoin’s drop to $3,000 began a 120-day consolidation period, after which the first cryptocurrency entered an uptrend and rose around 1,800%. Prior to the reversal, large investors were accumulating assets massively during the consolidation.
Since November’s ATH, Bitcoin had lost more than 70% of its value as large investors started taking profits, creating enormous pressure on a market that had no chance to cover the volume of BTC poured on the market.
At press time, Bitcoin is trading at $19,675 and losing 2.5% of its value after failing to break local resistance for the third time in a row.
