Bitcoin has been under consolidation between $10,200 and $11,200 for the past several weeks. After its bullish trend between January to July 2020, which brought new investors and an increase in Bitcoin value. Now the analysts are witnessing another bullish trend in September 2020.
The cryptocurrency is now trading between $10,600 and $10,800, with bulls and bears reaching an impasse as its volatility and trading volume both show signs of dwindling. The entire cryptocurrency market trends in the upcoming weeks will likely depend largely on BTC, as altcoins have lost virtually all of their momentum throughout the course of this consolidation phase in the year.
The Influx of New Investors Into the Market Points Towards Bullish Trend
Willy Woo, a respected on-chain analyst, has explained in a recent tweet that he is witnessing a bullish trend between Bitcoin’s dwindling price and the rise in activity amongst the new crypto market participants in September 2020. Once the trend is reflected in the price of Bitcoin, it could lead to an increase in investor sentiments. Also, good chances to open long positions.
He said “We’re seeing a spike in activity by new participants coming into BTC not yet reflected in the price, it doesn’t happen often. This is what traders call a divergence, in this case, it’s obviously bullish.”
Consolidation in the Bitcoin Trading
This consolidation of the Bitcoin ranges between $10,200 and $11,200. Until one of these levels is broken above or below, the cryptocurrency remains relatively trendless. Bitcoin’s volatility has dwindled over the past few weeks but has shown signs of recovering.
The entire crypto market’s outlook also hinges on BTC’s reaction to these levels, as virtually all altcoins have been seeing tempered price action as they observe the benchmark cryptocurrency.