“Bitcoin’s 3-month struggle to break the magical $10k feels like begin 2017 struggle to break $1k…we all know what comes next.”
Bitcoin price has been everywhere and nowhere lately. As price consolidates analysts are concurrently screaming bull and bear. The noise is leading to confusion for the average investor who is finding it difficult to separate it from the signal.
Let’s take a comprehensive view of Bitcoin price action to gain clarity on the bullish and bearish scenario with special focus on three indicators: Crypto Fear & Greed Index, the Bitcoin Golden Ratio Multiplier and Bollinger Bands.
Is $10K the new $1K for Bitcoin price?
Earlier this month, popular Bitcoin market analyst PlanB tweeted that:
“Bitcoin’s 3 month struggle to break the magical $10k feels like begin 2017 struggle to break $1k…we all know what comes next.”
The same question appears to be on the minds of many investors and the uber bullish sentiment of the previous two months seems to be taking a hit as traders wonder:
- Why isn’t Bitcoin price exploding as the digital asset was supposed to function as a store-of-value hedge against market volatility?
- Why aren’t alts proving 100%+ gains to kick off a new alt season since Bitcoin is consolidating and slowly becoming bearish?
- Why haven’t we seen a slow roll rally right after the Bakkt announcement of its platform launch next month?
Up until January 2, 2017, Bitcoin had traded below $1,000 for 1,124 days. Once above $1,000, the following $1,000 hurdles were lept over at an ever-quickening pace. The number of days between $1,000 and $2,000 was reduced to 23. By the time Bitcoin price reached $5,000, the number of days it took to secure another $1,000 gain had dropped to 10.
As of right now, Bitcoin has spent the past 2 weeks in a struggle to stay above $10,000 and traders like PlanB are beginning to wonder if $10K is the new $1K.
More experienced traders familiar with Bitcoin’s trading history and character will advise calm. But that’s not enough to allay the worries of those who might have purchased Bitcoin from $12,900 to $11,500, especially if there’s a possibility that Bitcoin could enter a prolonged accumulation phase that will last until Q1 of 2020.