Bitcoin Price is Fighting the $11k Barrier
For almost three days, the price of bitcoin has been restricted to a very narrow range located between $10k and $11k. On Monday, the price moved slightly from the $10k but has not been able to make a breakout that will take it over the current barrier of $11,044. This sum keeps holding as the best seven-day price. This strange position of relatively low volatility got many analysts worried about the growth potential for bitcoin in Q1 and Q2 of 2018.
Even more concerning is the fact that the average daily trading volume in February dropped by almost 40%. Thanks to this, the success of late 2017 will surely be absent in the first half of this year. While this is catastrophic news for investors that have entered the altcoin market, others see the same data as good news for the crypto domain in the long run.
According to Meni Rosenfeld, a respected bitcoin developer, the same drop is in correlation with the fact that the bitcoin buying craze has calmed down. A similar trend can be seen across the board with all of the big cryptocurrencies, while smaller altcoins are still taking the brunt of the drop in fresh investor interest.
When it comes to bitcoin, the analysis sees two potential scenarios that could take place when it comes to its short-term price movement. The bullish scenario includes a descending resistance that would produce the $11,640 price by this Saturday. If that occurs, the bulls could get the signal for a long-term revival of market activity that would take the bitcoin price way up. Currently, price charts show that the same bull run could lead BTC to above $17,000.
The bearish scenario sees the prices of BTC dropping near the $9k mark in the next couple of days. This would open the way to a price of about $6,500, even though the same drop would be short-lived. From it, a quick rebound can be expected that would again bring the price to the current rage of around $10,000.