After days and days of waiting, it looks like Bitcoin want to remain in its tight range of $6100 – $6800. Many bulls seemed to like that the largest cryptocurrency by market cap, defended the support level of $6100 a few weeks back in early October. There was even a broader rally among many coins which seemed to stoke investor sentiment. Despite all the hope and hype, we seem to be trading once again among the lower range of the trading channel. Basically, whenever the bulls seem to make a move, the bears wait and counter.
So what’s next? Some investors and traders have mentioned that this could be a nice long period of consolidation before a bull run. With the price holding above support, we seem to be range bound. Investors and traders could be waiting for the right opportunity to begin a buying spree which could push the price thru current resistance levels and into a new trading range. With Bitcoin’s propensity for large price moves, it is not at all implausible to see a large move to test $7400 or even $8400.
Aside from the hopeful short term outlook, more and more news seems to hit the wire regarding Bitcoin, blockchain and altcoins. Most of the news has been very positive with governments taking an honest look at cryptocurrencies and providing regulation, businesses seeking to adopt blockchain technology, and banks looking to form new payment methods using cryptocurrencies and blockchain. All this bodes well for both the long term and short term future for Bitcoin.
When will we see price movement? Most likely early 2019 as investors and traders take off for the holidays. It would bode well for cryptocurrencies if during the holiday season we see a flurry of crypto activity like, payments, business adoption and new tech supporting e-commerce or cross-border transfers. In lieu of those things, Q1 and Q2 of 2019 should see a lot of activity and price movement.
This movement will be spurred by institutional investors adding cryptocurrencies to their portfolios for the new year. This in turn will renew public interest, and let’s not forget, we are talking about global movements, not just local. Hence the rapid rise in price.