The market volatility for Bitcoin is very high. The price swings are not set to stop anytime shortly. A break above the value of $10,000 might provide Bitcoin with the required boost to move towards $11,000.
The price of the Bitcoin went down from the $11,000 levels down to $9,000. The price has recovered; however, the fact that the price is not crossing past the $10,000 is an indicator that the bulls are already exhausted.
Some analysts have predicted that the price of the Bitcoin will breakdown to $8,800 and $8,500. This prediction will hold good for as long as the cost of the Bitcoin does not cross the $10,000 mark.
There is enough buying happening now to sustain the price of the Bitcoin between $10,000 and $9,500 limits. When looking at the MACD, it is evident that the buyers are gradually improving their momentum towards the bears. Sideways trading is a very likely trend as the RSI is moving sideways at the average (50), and this is likely to continue in the short-term.
While the Bitcoin is currently down, it is not possible to count in it to be this way. On Thursday, the price of the Bitcoin went up by $1000 in just 30 minutes. This eventually helped to reverse a significant portion of its recent plunge.
The blame related to the sell-off sentiment has been universally attributed to the increased focus of the US government on regulation.
The bulls speculated that Libra would be bullish for the adoption of Bitcoin. Libra is likely to trigger a crackdown on the crypto by the Federal government. However, the uncertainty surrounding the price of the Bitcoin is not being handled well by the market.
The investor sentiment is measured by the crypto fear and the gear index. Currently, the scale projects an extreme fear scenario in the market. In the past month, the index showed a desperate greed situation from which the scenario has now shifted to intense fear.
About 35% of the Bitcoin trades below the yearly high.
Mnuchin stated, “We’re going to make sure that Bitcoin doesn’t become the equivalent of Swiss-numbered bank accounts, which were a risk to the financial system.” He further added, “I don’t think that’s accurate at all, that cash is laundered all the time. We combat bad actors in the US dollar every day to protect the US financial system.”