Bitcoin inches closer to elusive $21,000 level

Bitcoin is just a few hundred dollars away from reclaiming the infamous $21,000 territory in the face of bear market pressure.

On October 26, Bitcoin hit a high of $20,866 as it helped the sector push its total market capitalization to over $1 trillion. However, the momentum was not enough for the asset to break past the $21K marker.

At press time, according to tracking from Coingeckothe cryptocurrency is trading at a slightly lower price of $20,673, although it is still up by 2% in the last 24 hours and by 7.8% in the last week.

This scenario opens up the possibility of Bitcoin again falling below the crucial $20K area, falling back to the state it was in before the mini-rally took place.

But analysts believe the maiden crypto is not yet ready to give up its recent gains as bulls do their best to prevail over the bears.

Bitcoin squeezes after minor price correction

Jim Wyckoff, a Kitco News analyst, offered some reassurance suggestion for the Bitcoin community who are starting to worry after the asset dropped a bit.

According to him, in terms of current price action, bulls remain in control as they have “near-term technical advantage” over their counterparts. As such, an upside move for the crypto over the next few days is still highly possible.

Image: TIME

Earlier, crypto trading expert Michael Van de Poppe said that for the largest cryptocurrency by market cap to sustain its bullish movement, it needs to stay above the $20,500 zone.

The digital currency is also enjoying positive sentiment as indicated by its technical analysis, which suggests that the “buy” option far outnumbers the “sell”, 11 to 6.

Market forces at play for Bitcoin

While considered the leader of all cryptocurrencies, Bitcoin is not immune to market forces that can directly affect its price trajectory.

For example, the US Federal Reserve will again implement another 75 bps interest increase dealing with high inflation numbers that continue to unsettle the US economy and have already been proven to negatively impact the crypto space.

Meanwhile, fiat currencies like the British pound are experiencing extremes volatility and depreciation works in favor of assets like Bitcoin as investors are inclined to shift to better stores of value.

As investors, traders and holders wait for the next development in the BTC price movement, it is important to pay attention to these “triggers” as well.

BTC market cap at $397 billion on the daily chart | Featured image from Yamada-co.jp, Chart: TradingView.com