Bitcoin in a Tight Trading Range — Might Sustain Sideways
We are mid-way on the crypto tokens seeing the red in yet another trading week. Bitcoin is not able to hold the gains. And the majors are declining following the failure of Bitcoin to sustain its benefits. The overall market capitalization has dropped down below $250 billion. When the selloff quickens, the majors are in decline.
Most of the majors are in decline following Bitcoin’s failure to hold gains and break $8,000. Total market capitalization has dropped below $250 billion and is poised to fall further as the selloff accelerates.
Bitcoin dumped 2.5% and declined from $8,000 down to $7,500. There was a bearish signal on the weekly candle, and it signaled a drop by 11 percent ever since December. Ethereum was down to $235, which is a decline of 3%. Support for Ethereum is seen at $210. TRON dumped 5%.
Thus, in the foreseeable future, the $8,000 is likely the mark set by BTC. Bitcoin is therefore in a tight trading range, and this trend might persist for the time being. There is an increased selling pressure, but despite this, Bitcoin finds support at $7,800.
An analyst tweeted, “$BTC Go outside, enjoy your day. Set alarms for the top and bottom of this range. We are in full sideways mode, as price just bounced right off of the EQ of this range.”
However, several other analysts believe that this is a short term bear reversal. Some investors, particularly the newcomers, are confused and daunted about moving further. Those who are still working with beginner concepts are not likely to feel comfortable with the current trend as it triggers thoughts and strategies from advanced literature. Newcomers are not pleased about how to calculate the fees and how much they need to pay in taxes in the current scenario.
Bitcoin can change the consumer behavior of cryptocurrency. The next move of Bitcoin is expected to be harsh. Several authoritarians are beginning to use cryptocurrency. In a state like China, everything is becoming surveillance as they are moving ahead to become a cashless state.
The need for electronic cash where one will be able to spend the money without the intervention of intermediaries without compromising on privacy and freedom continues to be the need. It is possible by just a few entities to censor Bitcoin. With Bitcoin being a tool to evade sanctions, it is becoming a popular topic of discussion.
By DAN SAADA