As of late, bitcoin appears to be doing rather well for itself. The currency recently rose to the $9,600 mark, meaning that it’s surpassed present resistance and gained more than $300 in roughly 48 hours. However, according to some analysts, bitcoin is still in a position of heavy struggle, and not doing as well as it seems.
Bitcoin Is Still Struggling
While the asset has indeed risen beyond what analysts originally thought it was capable of, many agree that the currency hasn’t “broken out.” The DVAN Buying and Selling Pressure Indicator, for example, shows a negative trend for the world’s leading cryptocurrency by market cap. It is currently heading further away from the 400 level that up to this point, has been a heavy point of resistance for the digital asset.
The Bloomberg Galaxy Crypto Index offers similar evidence that bitcoin is trapped in a funk and not likely to get out anytime soon.
Right now, the major resistance point for bitcoin is $10,000, which the currency has broken twice in the past two months – only to fall back into the $9,000 range just hours later. The first time this occurred, the halving was on the cusp of taking place. A spike to $10K happened about 24 hours before the event happened on May 12, while the second occurred in early June. Each spike didn’t result in any lasting change for the currency. It jumped, then fell almost immediately after.
If something significant is to occur for bitcoin in the coming weeks, it would need to jump beyond the $10K figure again, and this time, it would need to stay there. Many analysts don’t see this happening. In fact, they’re commenting that bitcoin and Ethereum have barely broken out over the past few weeks and they’re expressing disappointment that the leading crypto pair has failed to reach any pinnacles.
Matt Maley – chief market strategy for Miller Tabak + Co. – explained in a statement:
I must admit, I’m surprised that bitcoin hasn’t done much recently given some of the speculation that more central banks are looking at cryptocurrencies in general. If it can break above $10,000 in any significant way, it’s going to take off in a moon shot. Momentum is an extremely important driver in the marketplace right now, so if bitcoin – which is no stranger to momentum – can break out, it’s going to fly.
This Is Common After a Halving
Edward Moya – senior market analyst at Oanda – comments that bitcoin has failed to experience any major change in recent days despite the idea that many traders are showing more interest in risky and speculative assets. He’s surprised the cryptocurrency hasn’t done more in terms of performance but believes this is relatively common right after a halving event. He states:
Bitcoin continues to consolidate in what many crypto fans are calling the typical accumulation phase that occurs after a halving event.