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Bitcoin Price Sees Biggest Plunge in Weeks, is a Gigantic Drop Inevitable?

Bitcoin 2020/05/21 19:56 by Lorenzo Stroe
Crypto Market Sheds $25 Billion With Bitcoin Losing 11%, What Triggered It?

After a bearish day yesterday, Bitcoin has continued with this negative trend today as well and bears managed to break the $9,326 support. Bitcoin experienced a 3% crash within one-hour dipping below $9,000 briefly.

Bulls have managed to push Bitcoin back above $9,000 but they seem to lack the strength to push it further. In fact, it seems that both sides lack strength and Bitcoin continues trading in a daily equilibrium pattern as well as an ascending channel.

Unless the bears can break below the ascending channel or break the last low, the daily uptrend will remain intact and bulls will still have the upper hand even if Bitcoin looks bearish in the short-term.

Interest In Bitcoin Continues Growing

More good news for Bitcoin, Grayscale fund trust has now bought around 33% of all Bitcoin mined in the last 3 months. The fund has added more than 60,000 BTCs to its savings between February and now. The portfolio’s total value is now more than $3 billion at current market prices.

Graph posted by a Reddit User.

The interest in Bitcoin on social media and Google search also seems to be increasing even though its price has remained fairly stagnant for the past month. 

It’s true that Grayscale Fund trust doesn’t necessarily affect Bitcoin’s price directly but it is still a positive sign that investors are willing to buy huge amounts of the digital asset. Open interest on major futures exchanges has also increased over the last 2 weeks. 

Is Bitcoin Ready For A Push Above $10,000?

Considering all the positive factors, it seems that Bitcoin is ready for a bull move. The current equilibrium pattern will most likely tighten up a little bit more before we see a big explosion. Bulls are hoping to keep Bitcoin above $9,000 today and especially above $8,800 to at least maintain the daily ascending channel. 

Trading volume has been a clear indicator for the past 2 weeks. Bulls need to see a lot more bullish volume if they want to break above $10,000. Are the whales simply accumulating before the break or are traders simply not convinced about Bitcoin’s bullish signs?

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