Bitcoin Price Chart courtesy of TradingView
Being one of the most volatile digital assets in the world, bitcoin has traders locked in divergent views about bullish runs and bearish gallops. Over the weekend, Capitol Hill’s impact on the market saw bitcoin hovering in a $600 daily corridor, experiencing a sharp drop in gains after the $13,800 bull run the market witnessed just two weeks ago.
At the time of writing, TradingView’s charts show a 2.77% drop, with the BTC/USD pair holding at $10,316. That’s a downward trend after BTC fluctuated from a high of $11,060 to a low of $9,125 last week. Several reasons have been put forward as the cause of this recent episode of volatility, ranging from Facebook’s Libra hearing to President Donald Trump’s anti-bitcoin tweet.
Despite the open support from stakeholders, Josh Rager says reactions are best viewed as neutral. Thus, the impact could lean towards a drop to $7,000, or we can expect strong positive reactions that influence a bull run above the $11,000 mark. The $11,000 bull run is supported by the 100 Simple Moving Average (SMA) which will allow for correction above the market price. We can expect this to happen once the current market price breaks above the resistance.
On the bright side, there are future events guaranteed to have a bullish impact on the market, regardless of the current uncertainties caused by pressure from regulators. Topmost on the list are the Bitcoin Futures products by Bakkt, set to be launched soon on the Intercontinental Exchange. We can expect market price consolidation when the Futures begin trading. Even the Bollinger Bands show evidence of the bitcoin price entering the consolidation phase. Another event that promises to affect the market positively is the halving of the bitcoin block reward which would take it down from 12.5 BTC to 6.25 BTC. The halving is expected to take place in May 2020.
Alt markets tend to be most active when bitcoin is on a downward spiral. It appears the king of cryptos is currently giving its subjects a strong helping hand, holding them in place as they stabilize to current market trends. High performers in the top 20 are ETH at $216, LTC at $94 and BNB at $30, according to TradingView. Low performers in the top 20 are Cosmos at $3, NEO at $12 and IOTA at $0.2, according to CoinMarketCap.
Hash rate graph courtesy of Blockchain.info
Network performance is also at its peak as recent all-time highs for transaction hash rate have seen figures like 69 trillion TH/s and 79 trillion TH/s. This evidences that the bitcoin network’s security is robust with formidable computing power backing it. Also, network transaction fees remain low, despite the sharp price fluctuations.