Bitcoin is just a few hundred dollars away from reclaiming the vaunted $21,000 territory in the face of bear market pressures.
On October 26, Bitcoin peaked at $20,866 as it helped the sector push its total market capitalization to over $1 trillion. The momentum, however, wasn’t enough for the asset to break past the $21K marker.
At press time, according to tracking from Coingecko, the cryptocurrency is trading at a slightly lower price of $20,673 although it is still up by 2% over the past 24 hours and by 7.8% for the past week.
This scenario opens up the possibility of Bitcoin once again falling below the crucial $20K range, falling back into the state it was before the mini rally happened.
But analysts think the maiden crypto is not yet ready to give up its recent gains as bulls are doing their best to prevail over the bears.
Bitcoin Clinches After Minor Price Correction
Jim Wyckoff, a Kitco News analyst, gave a bit of a reassuring suggestion for the Bitcoin community that are starting to worry after the asset declined a bit.
According to him, as far as the current price action is concerned, bulls remain in control as they have “near-term technical advantage” over their counterparts. As such, an upside movement for the crypto over the next few days is still highly possible.
Earlier, crypto trading expert Michael Van de Poppe said that in order for the largest cryptocurrency in terms of market cap to sustain its bullish movement, it needs to stay above the $20,500 zone.
The digital currency also enjoys positive sentiment as indicated by its technical analysis, which suggests “buy” option far outscores “sell,” 11 to 6.
Market Forces At Play For Bitcoin
While considered as the leader of all cryptocurrencies, Bitcoin is not immune to market forces that can directly influence its price trajectory.
For example, the U.S. Federal Reserve will once again implement another 75 bps interest hike to deal with high inflation numbers that continue to put U.S. economy in turmoil and is already proven to affect the crypto space in a negative way.
Meanwhile, fiat currencies like the British Pound experiencing extreme volatility and depreciation work in favor of assets like Bitcoin as investors are inclined to shift to better stores of value.
As investors, traders and holders await the next development in BTC price movement, it is imperative to also 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