Bitcoin (BTC) may have to wait for a bull cycle
Bitcoin (BTC) may have to wait for a bull cycle
Bitcoin was hovering at US $23,448.87 as of 28 February at the time of writing (1:11 am GMT), according to CoinMarketCap.
The global crypto market cap stood at US$1.07 trillion, down by 0.46% over a day with a 24-hour volume of US $45.37 billion.
When Bitcoin touched US$25000 on 21 February for the first time since August, several crypto enthusiasts hoped the bull cycle would return to the king of crypto. Courtesy of a 9% rally, Bitcoin was able to trade as high as US $25,104, thereby helping it recover some of its losses and bring its YTD gains to 50%.
However, all hopes were quashed as it quickly retraced and returned to the US$23000 mark following the negative remarks from financial regulators. Currently, it is hovering at US $23,448.87 as of 28 February at the time of writing (1:11 am GMT), according to CoinMarketCap.
The global crypto market cap stood at US$1.07 trillion, down by 0.46% over a day with a 24-hour volume of US $45.37 billion.
Will Bitcoin bulls rise again?
Well! That's the question on everyone's mind. Cryptoverse-Explored But seeing how Bitcoin has reacted of late, it would be safe to assume that the leading crypto could witness a sideways action, like 2015-2016, to move towards sustainable growth rather than rushing like in 2019.
In fact, since trading above US$ 25000, the BTC has quickly slipped back and has now registered losses of 5% over a week. BTC's futures premium seems to have stuck in a sideways zone despite the US $25,000 rejection.
Futures are often seen as a preferred instrument of whales as their settlement date and the price difference from spot markets.
Image credit: Trading View
That said, the Futures Perpetual Index (FPI) indicates it is below 2000, indicating that sellers request more money to withhold settlement longer.
Not just the FPI, BTC's OI (Open Interest) seems to have dropped over the past week resulting in the stagnation of market participation and trading activity. Besides, it also hints at a decline in demand for BTC.
How is the BTC price faring?
The Numero Uno crypto on Tuesday was down by 0.53% with a live market cap of US $4,51,60,28,59,197.
The RSI of Bitcoin stood at 52.4, indicating sellers have moved into a more stagnant phase compared to a week before.
The MACD, too, indicated a weakening of demand as the blue line (MACD line) dropped below the signal line (red line). The momentum seems to have slowed and shows that the bitcoin bulls might take some time to pull themselves back to the momentum.
Finally, the BTC's Aroon Up Line (orange) was about 14.29% at the writing. Usually, when an Aroon Up line is close to zero, it indicates a weak trend. A decline often follows this in the asset's prices.
The market participants may want to wait before making critical investment decisions even as the bears start circling around the bulls.
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