Bitcoin has gained by less than 1% during the past 24 hours. At the time of writing, BTC was trading at $19,252. The performance of Bitcoin is similar to that of the broader cryptocurrency market, where the global market cap has gained by 0.6% to $963 billion.
Bitcoin price analysis
The price of Bitcoin has consolidated at the $19K levels over the weekend, and no massive price movements point to a downtrend or an uptrend. During the past 24 hours, Bitcoin’s price has moved from $19,112 to $19,342, indicating low volatility.
Over the past week, Bitcoin has been down by 1%, as seen on CoinGecko. Nevertheless, the lack of any significant price movements shows that neither the bulls nor the bears are in control. Bitcoin has yet to decide how the price will move, and traders must remain conscious of short-term price movements.
Any slight dips in Bitcoin have been bought by traders anxious to profit during the next bull run. This buyer behavior could be behind the price consolidating within the $19,000 to $19,200 levels.
While the price is yet to give a clear picture of a bullish or bearish trend, it has remained above the $19,000 level. This increases the chances of a price bounceback that could trigger a rally past $19,500 and possibly $20K.
On the other hand, buyers are likely hesitating to accumulate more coins as they wait for the results of the next Federal Open Market Committee (FOMC) meeting early next month. The meeting could see another increase in the interest rates as the inflation levels in the US are still high at 8.2%, according to the latest Consumer Price Index (CPI) data.
The correlation between Bitcoin and the stock markets has also increased. The ongoing economic turbulence has affected risk assets as investors shift towards more stable assets such as cash, dampening the entire investments sector. Therefore, despite Bitcoin being touted as a hedge against inflation, a rally will likely depend on how the traditional asset space performs because of a rise in institutional adoption.
Bitcoin price chart
Bitcoin has a Relative Strength Index of 47, indicating that bulls and bears are fighting for control. Despite lower prices attracting buyers, Bitcoin is yet to reach overbought levels. On the other hand, the price consolidation is yet to rally sellers, which is why the RSI has not retreated to the oversold regions.
The main prices to watch out for are $19,300 and $19,500. If a bullish thesis is strong, a rally to $20K will likely be formed soon.
On the other hand, some analysts believe that traders have been actively chasing short-term price movements to salvage their losses. According to Santiment, this year’s bear market has pushed out weak hands from the market, and long-term traders are now anxious to see Bitcoin rally again.
The Santiment data pointed to one key metric, which is the discussion rate for Bitcoin. The analysis noted that the discussion rates for Bitcoin were generally low, which explains the bearish momentum. On the other hand, discussion rates for altcoins other than Ether were high as traders chased short-term gains in low cap cryptos.
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