Bitcoin price is unable to break out of a descending channel that gravitates around the technical level of $60,000. What is keeping it anchored at this level and what can we expect for the future?
In recent months, the price of Bitcoin (BTC/USD) seems to have remained trapped in limbo around the key level of $60,000.
Every time the value of Bitcoin moves significantly away from this threshold, it is as if a magnetic force pulls it back.
This behavior has contributed to creating a situation of apparent stalemate in which, despite the strong price fluctuations, we no longer see the decisive and violent directional movements that in the past characterized the on-chain market.
Why is the price of Bitcoin stuck?
The reasons for this stagnation are difficult to pinpoint precisely, but some attribute the blame to the uncertainty of the current global context. Geopolitical tensions, such as the two ongoing wars, unstable monetary policies, and global economic weakness, have certainly affected investor sentiment. However, Bitcoin has often demonstrated a certain independence from these factors in the past.
So, why is Bitcoin not behaving as it has in the past this time? One interesting theory is the evolution of technological trends and the reduction of hype around the cryptocurrency world. With the advent of artificial intelligence (AI) and other innovations, blockchain and its potential are becoming less and less talked about, even though it is still considered a cutting-edge technology. Could it be that interest in the "decentralized world" is waning, resulting in a reduction in demand for Bitcoin and cryptocurrencies in general?
What’s happening on the technical side?
The reality is that trading volumes are indeed declining. The market does not seem to be able to generate either strong enough supply or demand to create significant movements in the price of Bitcoin. This is also evidenced by the recent outflows from US-based spot Bitcoin ETFs. In the first 10 days of October 2024 alone, there were net outflows of over $400 million, which is a worrying sign for the market.
From a technical perspective, Bitcoin’s inability to consistently break above $60,000 could indicate an accumulation phase or preparation for a bigger move, but without a strong increase in trading volumes, it is difficult to predict a strong recovery. Momentum indicators, such as the Relative Strength Index (RSI), show that the market is in a neutral phase, with no clear signs of overbought or oversold, while short-term moving averages continue to cross, indicating uncertainty and lack of directionality.
What’s next for BTC/USD?
Will Bitcoin break out of the $60,000 limbo? It is possible, but only with a significant return of investor interest and increased market participation. From a technical standpoint, the price is in a fairly clear descending channel, making it crucial when one of the two extremes breaks out.
- Bitcoin 1D
- Source: Baha.com
Original article published on Money.it Italy 2024-10-10 13:35:00. Original title: Bitcoin, a quando l’uscita dal limbo dei $60.000?
