Bitcoin has been labeled with different kinds of names: Fake, misleading, confusing, and pointless. Despite these tags, many will agree that the crypto is never lifeless.
Bitcoin’s price has been surprisingly lethargic over the previous few days, bouncing just above and then below the $20,000 threshold. Since June, it has been unable to significantly surpass this level.
Trading below the critical $20,000 barrier, the largest digital currency is now outside of the $20,000 to $25,000 zone in which it has languished for the majority of the summer, following a massive liquidation in mid-June that pushed BTC down from $30,000 to $20,000.
Bitcoin Is Very Alive
As of this writing, BItcoin (BTC) is trading at $19,715, down 3% in the last seven days. Its market cap currently stands at $378 billion, data from Coingecko show.
Bitcoin’s inability to breach the $20K territory is not appetizing news for traders and exchanges that profit from the crypto’s inconsistent price movements.
As a result, traders may be forced to seek other asset types to invest on and give them some piece of mind. Crypto trading is mostly hinged on market sentiment. If the market is not looking good, it affects the emotion.
Some traders just don’t have the mental and emotional toughness to deal with certain kinds of situations, while others simply lack patience and make hasty decisions.
Image: Blockchain News
Ether (ETH) Gains Momentum
Meanwhile, Bitcoin’s continued sluggishness is allowing its main competitor – ether – to gather some steam as it buckles up to transition to a leaner blockchain.
Ether (ETH), with a market cap of roughly $190, is currently trading at $1,665, up 6.% in the last 24 hours, and 7.0% in the last seven days, according to Coingecko.
“Bitcoin is not dead. It is just boring at this time, so traders are already looking for alternatives,” MarketVector’s digital asset product strategist, Martin Leinweber, said.
The CEO of crypto derivatives firm FRNT Financial, Stephane Ouellette, has the following to say regarding the crypto’s current condition:
“This has been a relatively extended period of reduced volatility, it’s now beyond anything we’ve witnessed in even 2019 where these levels lasted around a quarter to a quarter and a half.”
Meanwhile, experts have identified a number of past support levels that Bitcoin might fall back on, even if the price drops.
In December of 2020, Bitcoin reached a support level of $21,900 before rising to $41,000. The historical performance of BTC also implies $19,900 as a potential support level should BTC retreat below $20,000, as it did in recent weeks.
Thus, there are numerous reasons to assume Bitcoin is not dead. In fact, based on these on-chain indicators, Bitcoin should be up on its way to reclaim its lost glory.
BTC total market cap at $384 billion on the daily chart | Source: TradingView.com Featured image from Outlook India, chart from TradingView.com
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