Bitcoin bulls struggle to maintain price uptrend after losing momentum to break past $21,000
Bitcoin (BTC) faces a possible crash below $20,000 after registering a short-term rally on October 27 that saw the asset nearly break past $21,000. The smaller gains had put the flagship cryptocurrency in line to exit the latest sideways trade that led to consolidation in the $19,000 – $20,000 range for several weeks.
Despite the minor correction, News from Kitco analyst Jim Wyckoff on October 28 suggested that bulls are still in control after battling with bears to take charge.
“Price action this week has seen a bullish upside ‘breakout’ from the choppy and sideways trading range of recent weeks. A new price uptrend is in place on the daily bar chart. Bulls have the overall technical advantage in the short term suggesting even more upside price action on short term,” he said.
Wyckoff’s bullish stance is consistent with the projection of crypto trading expert Micheal Van de Poppe. As reported by Finbold, Poppe noted that for Bitcoin to maintain its bullish momentum, the asset needs to stay above the $20,500 zone.
Bitcoin Technical Analysis
At the same time, a review of Bitcoin’s technical analysis signals bullish sentiment for Bitcoin. In particular, a summary of the asset’s technical characteristics indicates ‘buy’ at 11, with ‘neutral’ at nine, while six support the ‘sell’ option.
Elsewhere, the moving average is nine for ‘buy’ with neutral standing at one while selling is supported by five. Finally, oscillators are predominantly neutral at eight, while two are for buy, with one recommending “sell”.
Bitcoin price analysis
As it stands, Bitcoin’s short-term rally was a critical catalyst that pushed the overall cryptocurrency market to briefly regain its $1 trillion market cap. At press time, Bitcoin was trading at $20,300, corrected by nearly 2% over the past 24 hours. Notably, the daily chart shows that the price topped $20,700 before pulling back.
Although analysts are bullish on Bitcoin in the short term, the current environment of high inflation marked by interest rate hikes could affect the asset’s next price action.
The prevailing macroeconomic conditions are also partly working in favor of Bitcoin. For example, the falling British pound (GBP) pushed the currency to undergo significant volatility. This scenario prompted investors to opt for Bitcoin, as highlighted by increased BTC-GBP trading volumes.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
