Bitcoin has seen some wild market activity over the past few weeks, just rivalling those seen during past parabolic rallies, including the one in 2017.
The cryptocurrency shows little signs of slowing down some time soon, as the bulls took clear charge of their market behaviour.
Where mid-term patterns are likely to depend on whether or not they can form a strong support base in the lower-$30,000 area,
Bulls are trying to protect themselves against a dip below this level, and their short-term consolidation has proved to be incredibly bullish for altcoins like Ethereum.
Where market dynamics in the coming days are likely to focus on whether or not BTC will reach the consolidation process
Bitcoin’s rally is really turning parabolic. The recent cryptocurrency break of more than $30,000 spurred some huge inflows of buying pressure that helped it to climb to more than $34,000.
Since then, it has entered the consolidation process as bulls and is unable to regulate its price activity.
This consolidation will cause altcoins to see continued traction, with Ethereum reporting a huge $1,000 breakout today, while the DeFi market is also beginning to gain momentum.
One investor now notices that BTC has reached what he terms a price pivot, which comes when sellers get caught by a quick $30,000 turnaround.
Bitcoin Consolidates Following Massive Upsurge
At the time of publication, Bitcoin is selling at just under 2% of its current price of $32,800. This represents a major surge from the recent $30,000 lows set during a massive sell-off case that took place yesterday.
Where the crypto developments in the medium term should rely to a large degree on whether or not the lower $30,000 area will continue to be ardently guarded by investors.
BTC Sees “Market Pivot” as Bulls Trap Bears
The recent dip to $30,000 trapped a significant number of sellers, which may fuel a continued rise in the mid-term.
One analyst noted that this comes as Bitcoin completed a “market pivot” that has put it fully into bulls’ control.
“BTC: Market pivot it was… That historically large sum of sellers are now trapped or have either already bought back in adding fuel to the recovery rally… Looking for setups at yesterday’s high or today’s open.”
Image Courtesy of HornHairs. Source: BTCUSD on TradingView.
The coming few days should shed some light on Bitcoin’s near-term outlook, as well as how it may influence the rest of the market.
Featured image from Unsplash. Charts from TradingView.
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