The Bitcoin price has fallen to the $6,300 region after failing to retain momentum in the $6,400 to $6,500 range.
The volume of the dominant cryptocurrency has experienced a minor recovery from $3.1 billion to $3.6 billion across major cryptocurrency exchanges. Yet, regardless of the settlement of seven consecutive weekly candles in the low $6,000 region, it is struggling to demonstrate any promising price movement on the upside.
Yesterday, on October 22, CCN.com reported that due to the low trading activity in the Bitcoin exchange market, it will be challenging for the asset to initiate a short-term rally without the initiation of a sudden surge in price.
Months of stability often create a strong platform for an asset to engage in a strong upside movement but for BTC, its inability to comfortably breakout of a major resistance level at $6,800 since August 9 can be considered as a concerning indicator to traders in the market.
“If BTC can initiate a breakout above the $6,600 mark and potentially eye a move towards the $6,800 resistance level, then a bullish short-term trend can be confirmed. However, if it continues to show low volume and trading activity in the $6,300 to $6,500 range, it will be challenging for BTC to initiate a big spike,” the report read.
The failure of BTC to pass major resistance levels in the weeks to come could establish a dangerous precedent for the rest of the year. As cryptocurrency technical analyst who operates with the alias “Altcoin Thoreau” said, BTC could record a negative year-over-year performance for the first time in its history.
“One year ago October 21st 2017 was first time that $BTC went over $6000. If Bitcoin price stays in current range November 1st, 2018 will be the first time where Bitcoin’s price is negative on year over year basis.”
It is of utmost importance for the market to refrain from entering 2019 with negative sentiment, as it could extend the bear market throughout the first two quarters of next year.
With the launch of NYSE parent company ICE’s Bakkt Bitcoin futures market on the horizon, a recovery in the price of BTC is expected.
“ICE Futures U.S., Inc. will list the new Bakkt Bitcoin (USD) Daily Futures Contract for trading on Wednesday, December 12, 2018. The Bakkt Bitcoin (USD) Daily Futures Contract is a physically-settled daily futures contract for bitcoin held in Bakkt LLC, ICE’s Digital Asset Warehouse, and will be cleared by ICE Clear US, Inc,” ICE said.
In July, Coinbase disclosed its interest to list five digital assets including 0x, BAT, Zcash, Cardano, and Stellar.
The integration of 0x has led investors to speculate on the potential implementation of BAT, a token that is utilized as the native cryptocurrency of the Brave Browser.
However, due to the lackluster short-term price performance of BTC, the rest of the cryptocurrency market has struggled to demonstrate any positive signs of short-term rally.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: May 20, 2020 3:43 PM UTC