Bitcoin is only a few hundred dollars away from retesting the $21,000 area while facing bear market pressure.
On October 26, bitcoin peaked at $20,866 as it helped the region to take its total market capitalization to over $1 trillion. However, the momentum was not enough for the asset to break the $21K marker.
At press time, as per tracking from koingecoThe cryptocurrency is trading slightly lower at $20,673, although it is up 2% over the past 24 hours and 7.8% over the past week.
This scenario opens up the possibility of Bitcoin falling below the crucial $20K range once again, falling back to the position before the mini rally occurred.
But analysts agree that the first crypto is not ready to give up its recent gains as the bulls are trying their best to dominate the bears.
Bitcoin wins after minor price correction
Kitco News analyst Jim Wyckoff offers little reassurance suggestion For the bitcoin community who are starting to worry after the asset’s slight drop.
According to him, the bulls remain in control as far as the current price action is concerned as they have a “near-term technical advantage” over their counterparts. Therefore, an upside movement is still very much possible for the crypto in the next few days.
Earlier, crypto trading expert Michael Van de Pope said that for the largest cryptocurrency by market cap to sustain its bullish movement, it needs to stay above the $20,500 area.
The digital currency also enjoys positive sentiment, as indicated by its technical analysis, which suggests a “buy” option to outperform the “sell”, 11 to 6.
Market forces are at play for bitcoin
While regarded as the leader of all cryptocurrencies, bitcoin is not immune to market forces that can directly affect its price trajectory.
For example, the US Federal Reserve is once again 75 bps . will apply interest increase To deal with the high inflation numbers that are throwing the US economy into turmoil and have already proven to impact the crypto space in a negative way.
Meanwhile, fiat currencies like the British pound are experiencing a peak instability And depreciation works in favor of assets like bitcoin as investors are willing to move to a better store of value.
As investors, traders and holders await the next development in the BTC price movement, it is imperative to pay attention to these “triggers” as well.
BTC market cap at $397 billion on the daily chart | Featured image from Yamada-co.jp, Chart: TradingView.com