Bitcoin continues to consolidate
The 7-day chart shows a price loss of approximately 1%. The market leader has settled in a range and the daily volume has been falling below the USD 20 billion mark for a long time. In short: Bitcoin is at a standstill while the global economy struggles against a crisis of the century. No volatile fluctuations, no bull run and no bear market… How can this wait-and-see attitude be explained? We take a look at the possible approaches.
Bitcoin price in detail
The purchase volume and search requests are at a negative 3 month low on Friday. Before the halving, the experts had expected many price reactions. However, few predicted such a standstill. At the time of this article, the No.1 crypto currency is trading at a rate of USD 9342, which corresponds to a daily minus of 0.74%. On the downside, the support area is hedging the price at $9200, while on the upside the bulls are struggling with resistance at $9400.
Magic limit in the far distance
After the leading crypto currency has bounced off the magic boundary several times in the past few days, many indicators point to a comeback of the bears. However, the resistance in the USD 9000 zone has already proven to be reliable on several occasions. It seems that the decision will depend on the traditional markets.
The erratic correlation change is a constant part of the Bitcoin history. Whether gold, US dollars or traditional markets, users have repeatedly observed a strong correlation to other markets. When the major stock indices plunged south at the beginning of the Corona crisis, it did not take long for Bitcoin to drop below the important USD 5000 mark. The enormous correlations can be explained primarily by the low total market capitalization in crypto space. With a market cap of around USD 265 billion, the market is still a marginal market today.
Not “better gold”?
The limited reserves, the fast transaction speed and the low inflation rate made the digital currency one of the most successful assets of the decade. But especially in times of crisis there is a lack of independent isolation. To confirm its reputation as a “safe haven”, the entire ecosystem must become even more stable in the future and reach the mainstream.
What are the Altcoins doing?
A Bitcoin Dominance Index of 64.9% shows the clear distribution of roles. Ethereum and Co. are working in the background on important milestones, but independent price outbreaks remain a rarity for the time being.