Bitcoin was targeting $20,000 for the past few days but failed to break
Bitcoin remains under pressure as traders and investors are not yet ready to push the price of the first cryptocurrency above the $20,000 threshold that most bulls anticipate. Although Bitcoin is still struggling to move past the resistance level, it is still too early to say that it is “dead”.
According to Digital Gold’s daily chart, bitcoin is currently moving under the 21-day moving average, which acts as a barrier between assets that remain under heavy market pressure and those that enter a reversal rally. trying to do.
Consolidation as the near future of bitcoin
Unfortunately, the netflows, volume profiles and volatility of the cryptocurrency on exchanges suggest that traders and investors are not yet ready to push the price of bitcoin in any way.
Compared to massive bullruns, it is significantly harder to make money during consolidation periods, but “healthy markets” often enter longer consolidation periods after volatility spikes because those periods are also known as “cooldowns”.
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Back in 2018, Bitcoin’s drop to $3,000 triggered a 120-day consolidation period after which the first cryptocurrency entered an uptrend and gained nearly 1,800%. Before the reversal, large investors have been accumulating huge amounts of assets during the consolidation.
Since November’s ATH, bitcoin has lost more than 70% of its value as large investors began to take profits, creating huge pressure on the market, which has had to limit the amount of BTC pumped into the market. There was no chance to cover.
At press time, bitcoin was trading at $19,675 and lost 2.5% of its value after failing to break above local resistance for the third time in a row.
