BTC continues to move sideways
The no. crypto currency has been consolidating for days in the range between 9000 USD and 9300 USD. Meanwhile, the Altcoins are regaining market share and provide hope for a new Altcoin Season. This is the situation at first sight… But what is really behind the long consolidation phase? We take a look at the reasons.
Bitcoin price in detail
At the time of writing, Bitcoin is quoted at USD 9161 (+ 0,14 %). Thus, the bears fail again with their attack on the support area at USD 9000. However, the bulls lack the power for a price breakout. The next resistances are currently at 9200 USD and 9300 USD. However, a trading volume of around 12.6 billion implies that the buying power for a new price rally is missing.
Wall Street dictates the pace
Countless markets are currently looking at the S&P 500 and the developments on Wall Street. The worrying numbers of new coronavirus infections present the USA with a difficult task. To date, more than 13 million people worldwide have been infected with the novel virus. Experts continue to argue about whether the actual damage of the pandemic has already been fed into courses. Only on Thursday did we receive reports from China, where the stock market suffered the biggest sell-off since the corona collapse in March.
Bitcoin’s hands are tied
The low trading volume, the comparatively weak market capitalisation and the uncertainty in the traditional markets mean that the BTC’s hands are tied. In this crisis, “digital gold” cannot recommend itself as a crisis-independent store of value. The crypto currency has all the prerequisites: A low inflation rate (approx. 1.8 %), a limited occurrence, and digital transaction possibilities without a “third party”.
Focus on Altcoins
While the first mover is standing still, the alternative assets are attracting attention this week. Chainlink is pulverizing the old all-time high and climbing to position 8 on the crypto charts. At the same time, the Cardano community is looking forward to the Shelley update. On Saturday the BTC Dominance Index is at 62.3%. Dogecoin records the largest pump in the Top 50 with a price increase of about 15%.