Bitcoin: Consolidation is Coming

Bitcoin: Consolidation is Coming 

Bitcoin (BTC) has been in a $30,000-$35,000 range for almost a week at a time when some market participants are seeking out ether and other crypto to trade during the perceived doldrums. 

Bitcoin’s price dropped as much as 10% during early trading hours on Tuesday as bitcoin miners started selling a large amount of the cryptocurrency for the first time since October. There is not enough demand to absorb the additional coins on the market because institutions want an idea of how the new Biden Administration will view bitcoin and other cryptocurrencies. 

What does this mean for BTC? 

A period of consolidation can be seen as a positive for the market after recent breath-taking moves and once the market re-balances, fresh highs look the path of least resistance for now.  

BTC is trading at $31,697 this Wednesday morning. Bears seem to be gaining traction as selling pressure increases under the Bollinger Band middle boundary. Support at $31,000 plays a vital role in keeping Bitcoin away from losses that could retest areas under $30,000. 

Following the ongoing consolidation, Bitcoin may restart the uptrend first to $40,000 and later extend to $50,000. Hence the need for the bulls to secure a higher bottom, allowing them to shift the focus to these higher price levels. 

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