About a month ago, on October 15, bitcoin[crypto coins=”BTC” type=”text” show=”percent”] price reached a high of $7,358.4 and gained nearly six percent. However, the digital coin is struggling to move up after that. Not only that, even after the price started to fall, there was no significant reversal of fortunes in the cryptocurrency. Therefore, what does it hold for investors or traders in the upcoming period?
Lack of Catalyst
There is sluggishness in bitcoin[crypto coins=”BTC” type=”text” show=”percent”] price movement, and every upward movement gets dragged down by one or the other reason. Looking at the gains a month ago, it happened after doubts raised about Tether[crypto coins=”USDT” type=”text” show=”percent”] that witnessed a sharp fall. Whenever there were any doubts about stablecoins, people turn towards bitcoin[crypto coins=”BTC” type=”text” show=”percent”] or any other cryptocurrencies, and it happened on that day too. On October 15, the volume reached as high as 443.44K from just 99.38K the previous day.
The next day, volume plunged to 155.85K and slipped further to 136.71K in the following day. Since then, the volume crossed 150K mark only four times and that too in the current month only. While there was a gain in two instances, there was a loss in the other two instances. Significantly, volume fell below 100K at least seven times after bitcoin[crypto coins=”BTC” type=”text” show=”percent”] price crossed $7,300 levels. That suggested continuous pressures towards the downside, and there was no fresh buying coming in.
On the other hand, September month has seen more than a million volume on a daily basis throughout the month. The least volume was 2.82 million, and the highest volume was 9.57 million. Even during the first six days of October, volume was running into millions. This suggested a sharp drop in volume and could be interpreted as the waning of interest in the most valued virtual asset. Also, there is nothing to support its upward movement.
Another reason is that investors and traders have shifted their focus towards bitcoin cash (BCH)[crypto coins=”BCH” type=”text” show=”percent”] that is moving towards another forking. That is because it allowed them to make some quick money. However, for bitcoin[crypto coins=”BTC” type=”text” show=”percent”], if it has to stage a comeback, it should first hold on to the 200-day moving averages of $7,007.7 to make a strong upward movement. Until then, it will struggle, and any upward movement will be used for locking profit.