Calm Before The Storm? Bitcoin Confirms Golden Cross But Yet To React ⋆ ZyCrypto
Bitcoin continues to trade sideways in a tight range. The largest cryptocurrency is faced by two prospects, break above $10K, or slide below $9K. The latter looks more likely with sentiment across still indicating a potential for more gains. But now, one key technical development could have the last impact that finally sees Bitcoin reach $10K.
For the first time since February, Bitcoin has confirmed its golden cross. The crossing is confirmed once the 50-day moving average crosses over its 200-day moving average.
This was achieved on Tuesday. Hours later and Bitcoin price is yet to react. Calm before the storm? In the past, this has had a bullish impact. Investors now expect Bitcoin to break above $9,800 and make $10K its new support.
One of the key reasons that continue to keep Bitcoin under $10K despite all the positive indicators is low volume. Bitcoin is recording daily volumes of under $35 Billion. This is not offering adequate momentum to break higher resistances and keep the above crucial supports. In a truly bullish market, Bitcoin records the daily trading volume of over $50 Billion.
Some analysts are calling for a further pullback below recent lows of $9,300. A pullback allows investors to reaccumulate before attempting to break higher resistances. The latest major drop to $9,300 was expected to see investors gather enough momentum to break $10K. Its failure has been an indication that Bitcoin might need to dip below $9K, possibly to the $8.8K support before it can break above $10K.
Bitcoin’s Flop Is Good For Altcoins
Although Bitcoin’s hesitation continues to hold back altcoins, a dip could be a major gain for altcoins. Bitcoin’s continued sideways trading and potential drop could soon see it lose dominance to altcoins led by Ethereum.
Earlier in the year, there was a hint of the altseason coming back. This narrative was squashed with the break of the COVID-19 pandemic which shifted all attention to Bitcoin. And when this started fizzing out, the Bitcoin halving event took center stage.
If Bitcoin does not show real bullish prospects by breaking $10K soon, investors could turn to altcoins and reignite the altseason.
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DISCLAIMER Read MoreThe views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.