Bitcoin Has Been at a Standstill for 4 Days. Here’s What’s Ahead

Bitcoin has been at a standstill for 4 days after dipping to $22,200.
A lot of FUD is on the way as FED Chair Jerome Powell is set to meet with the Senate.
However, Santiment says that this amount of FUD usually leads to a price bounce.

Ever since Bitcoin (BTC) fell sharply from $23,500 to almost less than $22,000 last Friday, March 3, the leading crypto has been at a standstill. Today marks the fourth day that BTC’s price has barely moved an inch.

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This is possibly due to a number of factors. For instance, today is when the US Federal Reserve Chairman Jerome Powell will meet with the Senate Banking Committee to assess the performance of the US economy.

Many are waiting for any news after this day, especially since the prevailing sentiment is that the US will maintain a hawkish stance on financial markets, including crypto. Hence, the crypto market is making very little movement.

There is a high possibility that BTC might touch $21,500 or worse, limp at the $20,000 support level. The market is still bearish, overall. However, Santiment is saying that this is also a good opportunity for a price bounce.

In detail, the market analytics platform claimed that the chances of a price bounce increase significantly during a period of disbelief.

Meanwhile, the macro perspective on BTC is showing that the worst is over, as far as the conventional market cycle is concerned.

BTC/USDT 1-day chart (source: TradingView)

As seen on the chart above, BTC may indeed be at the disbelief stage. There are also two critical things to observe: trading volume and moving averages.

Specifically, BTC’s trading volume has dramatically increased since the months when its price was still in the $40,000-$50,000 range. This shows that there is significant interest from crypto traders and investors in BTC. Meanwhile, the 50-day moving average has already crossed over the 200-day moving average, another bullish sign.

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Jesus Dawal

Jesus Dawal Jr covers news related to the crypto space in Asia and in Australia, although he follows the latest events in the US and Europe as well. He is most interested in the blockchain gaming and regulation aspects of the industry.