Bitcoin Remains Range-Bound At $7,000, Analysts Bearish
On Friday morning, investors and traders across the crypto industry awoke to a pleasant sight, with the majority of crypto assets posting gains, albeit slight. Regardless, many welcomed this move, with optimists expecting for this relatively bullish price action to continue.
“Bitcoin Has A Serious Chance To Reach The Level Of $3,000”
At the time of writing, Bitcoin has situated itself in the low $7,000s, currently posting a 24-hour gain of 1.2% at the price of $7,051.66. The asset is now on track to record its third “winning week” in a row, which may allude to the fact that sentiment in this industry may be starting to shift.
Since Monday, Bitcoin has been range-bound between $6,800 and $7,100, likely due to the declining volatility of crypto assets in general. Additionally, there aren’t any explicit catalysts, whether fundamental or technical-based, that should (or have) propelled Bitcoin over the past weeks, leaving some to mentally place the foremost crypto asset into a state of “purgatory.”
Stepping back, it becomes even more apparent that BTC is stuck in a range, with the price of the asset remaining between $8,500 and $5,800 for nearly three months.
Speaking with MarketWatch, a San Francisco-based financial information website, Kevin Lu and Thejas Naval of Element Digital Asset Management commented on this lack of volatility. The two noted:
“Within our own team, we tend to believe the market is in an ultra reflexive state currently. It moves within a range in response to seemingly every bit of news. This is likely the result of trading having been dominated by short-term players that are using structured derivative vehicles with leverage to express intraday speculation.
While the Element Digital Asset Management researchers did not give any clear price predictions in light of the state of the market, another analyst did. Alexander Kuptsikevich, an analyst at FX Pro, noted that the market could be set to move lower. In a statement, the short-term crypto pundit touched on Bitcoin’s inability to surpass levels of resistance, explaining:
The inability of bitcoin to grow above $7,000 seems to be a serious caution. The technical analysis teaches us that the movement within such a triangle often ends up with a breakdown of support and a sharp impulse to decline,” he said. “In this case, bitcoin has a serious chance to reach the level of $3,000
But as with nearly each and every scenario, there are two (or more) sides to an argument. As reported by Ethereum World News, Michael Moro, the CEO of Genesis Trading and Genesis Capital, recently took to CNBC’s “Fast Money” segment to convey his thoughts on the current state of the cryptocurrency market.
He opened his time on the show by explaining that bears have likely begun to run out of steam, pointing out that the strong levels of support at $5,800-$5,900 were staving off any short-term sellers. The Genesis Trading CEO went on to note that as market conditions are starting to improve, Bitcoin will need to hold above $7,000 to confirm that the bulls are really back. Moro elaborated, stating:
If the [$7,000] level holds, say for the next week, two weeks, the bulls will 100 percent be back. They will be more comfortable that the lows for the year are in, and that we are more likely to see $10,000, rather than $5,000.