Bitcoin Bumps into a Heavy Resistance

Is bitcoin falling behind?

This is the main question that circulates in many analysts’ heads, given that in the past several days, bitcoin has remained in a single spot.

Barricades encountered by Bitcoin

Bitcoin currently trades at around $15,365, which is in the middle of the range where it has been traversing in the past week. Some analysts believe that if bitcoin retains its previous momentum, it would likely hit $16,000 now, although it isn’t necessarily the case, which causes some doubt to spring up in the minds of industry experts from everywhere.

As of now, bitcoin is facing resistance at $16,000. It is even more disturbing that the U.S. is on the edge of releasing a COVID-19 vaccine that has been the most successful in all trials up until now. News like this can push bitcoin forward, although the world’s number one digital currency by market cap stays where it is.

Technical analysts denounce what they refer to as the trading envelope, a move that indicates the bitcoin average is reversing itself. Although the effects may not be large or long-lasting, the move is intended to smooth out the present limits of all the major digital assets. Now it seems that it has its sights locked on bitcoin.

Since September, the cryptocurrency shot up by more than 40% in price, but Oanda Corp senior market analyst Edward Moya says that traders shall not get too comfortable yet. In an interview, he declares:

“Today’s reaction mirrors gold and it goes to show you that for many people, bitcoin is a safety trade. With today’s news, you have one of the biggest risk events taken off the table, for the most part, and you saw people quickly reduce their crypto exposure.”

A Strong Gust in Value?

Notwithstanding the newfound attitude of gloom, many traders and enthusiasts are not falling for the negative hype and believe that the current situation is not likely to last longer. The president of Pro Chain Capital, David Tawil says:

“I don’t take today as being indicative of any long-term trend, up-down, sideways, whatever. The confluence of two major events I think put today in a separate category, so I expect that bitcoin will continue its march upward.”

Fortunately, the market cap of bitcoin has exceeded $280B this morning; it means that the currency is now larger than Netflix, Disney, and Bank of America combined. Given that this momentum can be sustained, the asset will emerge as one of the biggest commodities the world has seen.

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