After gaining much momentum over the past few weeks and rising above the $5,600 level, bitcoin has dropped back by about %3.57 and at the time of writing, it is standing at around $5,418. Although a local minor drop has been observed, the overall trend is still bullish keeping in mind the previous trend over the months. But there is one critical level that needs to be held if bitcoin is to maintain its bullish consolidation, as pointed out by a cryptocurrency trader, “Chonis Trading…”, in his tweet:
$BTC – sure a little pullback in #bitcoin from local highs but when does a pullback become a more meaningful trend change? The amount of support now above $5k to $5200 area has been tested and bought up several times so until we lose that area it’s still Bullish consolidation.
As long as the asset is staying above the support between $5,000 to $5,200, positive expectations can be associated with it. Besides, no market operates in a linear straight line fashion, be it the stock market or crypto. Rises are often followed by drops. As recently, the well-renowned cryptocurrency influencer, Ran Neuner, tweeted:
The market was never going to go up in a straight line!
Volatility associated with bitcoin is often termed as anathema by those actors who want to see it become a legitimate and regulated currency of global status. Stability in price will attract major payment retailers and financial institutions as the monetary system established by bitcoin is borderless and fast. New kinds of marketplaces can thus be sprung up if bitcoin becomes a validated and stable payment source. But this is not the case right now.
Volatility has kept a hold of the crypto world. One day, the asset is seen shooting up in terms of its price severely, possibly due to manipulation by big whales who are using pump-and-dump strategies, and the very next day, it is down on its knees. But then again, it is the exact same thing that attracts investors and traders into this space so that they can make a quick buck using crypto trading. Overall, there is a “volatility dilemma” that is prevailing over the crypto world.
With all eyes set on this asset, it will be interesting to see whether the world’s largest cryptocurrency in terms of market capitalization, that challenges the throne of the centuries-old banking system, is able to maintain its bullish-run or not. Exciting times lie ahead.
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