Bitcoin’s volatile trading is due to bulls and bears
After a promising start to the week, Bitcoin (BTC) has retraced below the critical $20,000 barrier as bears continue to demonstrate strength. With bears and bulls competing for control of the leading cryptocurrency, all eyes are on Bitcoin’s reaction.
In this instance, Kitco News analyst Jim Wyckoff claimed on October 7 that bears have gained momentum based on the asset’s most recent price, but bulls are not gaining momentum in the same manner as bears.
As the battle between bulls and bears seems to remain, the analyst predicted in his technical analysis that Bitcoin will likely trade sideways in the immediate term.
Notably, Bitcoin has fallen below $20,000 due to lengthy macroeconomic issues such as excessive inflation and a faltering economy. The latest decline followed the addition of 263,000 jobs by U.S. firms in September.
Despite being somewhat higher than anticipated, the statistic reflected the deteriorating job situation. As a result, the situation might prompt the Fed to raise interest rates, reducing demand for riskier assets such as Bitcoin.
Although Bitcoin’s short-term price behaviour remains uncertain, there is widespread agreement that the currency will likely appreciate in the future. New research by Finbold indicates that Bitcoin whales are increasingly purchasing during price declines, highlighting the possibility of a price rally.
Simultaneously, ordinary investors are investing in Bitcoin since the asset is considered as a store of value in light of the decline of global fiat currencies. As of September 27, there were approximately 4.5 million more Bitcoin holders.
Despite the price volatility of Bitcoin, the commodity is stabilizing below the critical $20,000 threshold. At the time of publication, the cryptocurrency was valued at $19,600, a decline of almost 1% in the previous twenty-four hours.