Keeping Eyes Peeled on BTC Price Action
We’ve had a full week since the turbulence of Thanksgiving, when BTC prices fell $3,000, bouncing violently off of new all time highs, only to recover within a few days. Last week was defined by relatively low volatility in comparison, with prices oscillating around $19,000. That action held over the weekend and looks to be continuing so far today.
This balance of buyers and sellers is a welcome respite, and I believe it shows that holders who had been hanging on since the highs of 2017 have taken this as a signal to trim their holdings, taking money off the table. Meanwhile institutional buying is still out there, with MicroStrategy announcing the purchase of another $50MM worth of BTC and coins still flowing into Greyscale’s GBTC. This undercurrent is providing support.
There is likely still a bit of both resistance and support, which will keep prices mostly stable until one finally overwhelms the other. I have no crystal ball, but it seems as though the support side seems to be more consistent and robust. I’ll be keeping my eyes peeled for any news of upcoming regulations that might have an impact on markets, but barring any unforeseen developments, I expect that eventually the accumulation by new entrants will eventually whittle away the sell interest from long time holders divesting and we might see a leg higher. But until that happens, we might just bounce around $19,000 for a bit longer.
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