Bitcoin has dropped by 1% over the past 24 hours. The largest cryptocurrency was trading at $19,355 at the time of writing, according to CoinGecko. The global cryptocurrency market cap is currently at $978 million.
Bitcoin’s price consolidates
Over the weekend, Bitcoin remained relatively calm. Unlike in the past, when notable price movements could be seen during the weekend, Bitcoin’s price has failed to rally, and the price is yet to make any significant trend as the week starts.
Bitcoin has started yet another week below $20K. While the current level could excite traders of a possible bull run in the coming days, there is a high possibility that the fight between the bulls and the bears will see the prices consolidating for a while.
Bitcoin is yet to break out from the multi-week trading range. Over the past seven days., BTC has traded within the $19,180 and $20,420 range. The coin’s trading volumes over the last 24 hours stand at $17.59 billion.
If the bulls can support the uptrend, Bitcoin could head towards the next target of the 2017 all-time high at around $19,800. If it breaks past this level, a rally past $20K and possibly $21K could be on the way.
On the flip side, bearish traders have been actively working to drive the price down past the $19K mark. If the current drop continues during the day, Bitcoin might fall to $18,900, which could alarm investors about a possible trend reversal like the one seen in June this year.
The Moving Average Convergence Divergence (MACD) line is currently trending at par with the signal line. Neither bulls nor bears have complete control of the market, and we could see the $19,200 to $19,500 levels holding for a while. However, macroeconomic factors will determine whether Bitcoin will break upwards or downwards.
The Bitcoin Fear and Greed Index is currently at 22, showing that the market is in a state of extreme fear. The index is the same as the one read on Sunday. The index has been in the fear zone for quite a while now, and despite it showing the bear market intensifying, significant selling pressure will likely not be witnessed.
Macroeconomic factors that could move Bitcoin’s price
The current estimates have it that the mining difficulty could spike by double-digits this week and could easily take it to a new all-time high. The numbers show that the competition of miners is increasing alongside network participation.
As the mining difficulty increases, the production costs for Bitcoin mining sites will also increase, which will squeeze profitability. This scenario increases the risk of miner capitulation. Miners hold nearly 80,000, but if prices drop below $18K, there is less likelihood that all the coins will be sold at low prices.
Bitcoin’s price has been moving in tandem with stock prices. The tensions between Russia and Ukraine are at very high levels following the bombing of the Crimea bridge and the attacks on Kyiv. The tense situation is bound to affect stocks, and Bitcoin could react to this.
Amid an uncertain situation in the crypto market, a trader might consider investing in IMPT. IMPT is the native token of the Impact Project that targets ESG-conscious investors. The IMPT token is currently in one of the hottest presales of 2022.
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