• Bitcoin price just surged high and then dropped at the same speed, indicating a possible short-term bullish channel.
• The BTC price has formed a CME gap below $20,000, and analysts believe a plunge to those levels could be imminent.
• The crypto markets have been largely consolidated due to US authorities cracking down on prominent crypto players.
Bitcoin (BTC) has been making headlines lately as it just surged significantly but only to drop back down at the same speed, displaying the possibility of trading within a short-term bullish channel. This comes as BTC price has formed a CME gap below $20,000 and hence top analysts believe a plunge to these levels could be imminent.
The crypto markets have been largely consolidated since the early reading hours as the news of the US authorities cracking down on the prominent players of the crypto space has been making huge rounds. Presently, Bitcoin (BTC) prices have dropped by more than 2% after undergoing a giant rise of more than 15% and currently trading around $20,743 with a 21% jump in the trading volume, largely dominated by the bears.
However, despite the bearish sentiment, Ethereum has managed to hold crucial support at $1500, followed by BinanceCoin by 3.79%, XRP by 1.8%, and Cardano by 4.77%. Besides, the global crypto market cap has also suffered a drop of nearly 2.54% and is currently trading at $966.12 billion.
The upcoming Bitcoin trend appears quite misty as it continues to trade within a very narrow range, displaying the possibility of heading in either direction. Therefore, it is essential to determine whether the BTC price may reach the desired target of $22,500 or enter a corrective wave.
To understand the current state of Bitcoin, it is important to note that the cryptocurrency has been in a bull run since the beginning of this year and was on the verge of hitting a new all-time high. However, the correction it experienced in the past few days has significantly lowered the bullish momentum.
On the other hand, the current market sentiment shows that investors are waiting for a good entry point in order to buy back in, believing that Bitcoin will eventually rise and break its all-time high. Furthermore, there is a growing sentiment that Bitcoin could be entering a period of consolidation, with the possibility of a further price drop.
In conclusion, it is difficult to predict the future of the Bitcoin market with any certainty. However, it is important to keep an eye on the market and monitor the news closely in order to make informed decisions. Until then, investors should remain vigilant and be prepared for any eventuality.