Bit-comment: finding a consolidation
July 01, 2019 @ 11:12 UTC
Bitcoin is trying to find a consolidation point to take a breather and determine where to go next. Over the weekend, “tug-of-war” between bulls and bears was clearly defined around the $ 12’000 round mark. However, in this case, the victory was more likely for the bears, because by the beginning of the new working week, Bitcoin still turned out to be at the bottom, $ 11’000. Of course, this level is quite a good achievement, since over the month the BTC still grew by an impressive 30%. The trading volumes of the benchmark cryptocurrency fell slightly from a historic high of about $ 46.5 billion, and now make up $ 29 billion. It is likely that the crypto market will still get a little time to take a breath.
Considering the alleged institutional origin of the current Bitcoin rally, the asset may not repeat the dynamics of December 2017, because the last time, starting at $ 11’000, BTC grew almost nonstop, seriously rolling away from around $ 18’000, and then reaching a historical maximum. At the moment, a variety of scenarios of asset behavior are possible. In the event that the overwhelming majority of investors entered the market at $ 3’000, current levels may turn out to be quite acceptable for them to take profits, and this can cause a large-scale collapse of the market.