There’s one word (among others) that analysts are using to describe Bitcoin values right now.
Rangebound.
Bitcoin (BTC) has traded sideways over the past few days,” writes Damanick Dantes at Coindesk today. “The world’s first cryptocurrency was trading near $37,000 at the time of writing and was down about 5% over the past seven days. A short-term breakout from the sideways range would yield an upside target around $45,000, although resistance remains strong. For now, $40,000 is a key hurdle which could limit buying strength over the near-term.”
Dantes itemizes support at 33,000 and resistance at 40,000 for the coin’s value, citing a neutral RSI and current values below BTC’s 100-day and 200-day moving averages.
It’s important to remember that this is not the first time that Bitcoin has been rangebound like this: just a couple of years ago, we were looking at sideways action around $6,500 for weeks prior to Bitcoin’s wild rally that propelled it up into the stratosphere at 150% of current values.
When the coin’s value neared 60,000 we heard all kinds of wildly ebullient projections from fans.
However, since then we’ve heard quite a bit from Elon Musk and some others about it coin’s Achilles’ heel – its energy-intensive mining requirements.
“Musk’s sudden realization that bitcoin might not be eco-friendly to mine caused immediate panic, and the price dropped from around $54,000 to $46,000,” wrote Chris Smith at BGR, characterizing the downside activity May 17. “Bitcoin rebounded soon after that to top $52,000. But then Musk continued tweeting over the weekend. He made several remarks against bitcoin and in favor of dogecoin, thus tanking bitcoin’s price even further. The coin dropped to a low of around $42,000, a level unseen since mid-February.”
Will Bitcoin recover?
On the one hand, you have its new reputation as “not a very green” investment.
On the other hand, though, you have extensive institutional buy-in, with companies like Microstrategy and even Tesla using massive amounts of Bitcoin for capital reserves.
So in some senses, big business has a stake in keeping Bitcoin valuable.
Remember that, and let’s see where it goes over the next two weeks.
