Since August 20th, the Bitcoin price has seesawed around the $20,000 price level. Today, with the crypto trading at a $19,100 price level, the long-term sideways market looks poised to continue.
The consolidation of the Bitcoin price points to several factors currently affecting the cryptocurrency market, among them the current technical resistance around the $20,000 price level. Normally, Bitcoin price would be in a downward trend, as most US stocks have been for the past few weeks. This is because recent data has shown a strong correlation between the Bitcoin industry and the stock market. However, the current price action indicates competition between the buyers and sellers of Bitcoin has remained constant, unlike the stock market, which has had a selloff. In fact, any attempt of a breakout to establish a trend has been well-defended by the bulls and bears, depending on the direction of the price action.
Bitcoin Price Prediction
Looking at the chart below, the Bitcoin price has failed to establish a trend for the past two months, with prices mostly seesawing around the $20,000 price level. In the past trading sessions, we have seen the pattern where the bears and bulls fight for control continue but still fail to establish a trend.
Therefore, for the short term, I expect the horizontal trend to continue, with neither the bears nor the bulls gaining an edge over the other. I also expect the prices to continue trading within a narrow range of between $18500 and $19500 for the next few trading sessions. However, I expect Bitcoin to continue outperforming other cryptocurrencies. This view is also held by a Bloomberg analyst who indicated that despite the Fed rate rising to squash the current inflation rates, Bitcoin has been able to hold still and, instead of dropping, adopt a sideways market, a sign of strong performance. However, a drop below the $17500 price level will invalidate my Bitcoin price sideways analysis.