After beginning the week on a positive note, Bitcoin (BTC) has again corrected below the crucial $20,000 level as bears continue to flex their muscles. With both bears and bulls tussling to take control of the flagship cryptocurrency, attention is on how Bitcoin will react.
In this case, Kitco News analyst Jim Wyckoff on October 7 stated that bears had gained momentum based on the asset’s latest price, but they are not establishing any momentum just like bears.
Therefore, the analyst projected in his technical analysis that Bitcoin would likely trade sideways in the short term as the tussle between bulls and bears looks to persist.
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“Bears have gained just a slight bit of momentum late this week. Still, bulls and bears continue to fight for near-term technical control, with neither gaining much ground and still on a level overall near-term technical playing field. That suggests more sideways and choppy trading in the near term,” he said.
Bitcoin slips below $20,000
Notably, Bitcoin has slipped below the $20,000 level in the wake of extended macroeconomic factors like high inflation with a struggling economy. The latest drop came after U.S. employers added 263,000 jobs in September.
Despite the figure being slightly higher than the projected numbers, it still reflected the weakening labor market.
Therefore, the scenario might trigger an interest rate hike by the Fed, translating into less interest in risky assets like Bitcoin.
Signs of possible rally
Although Bitcoin’s price action in the short term remains unpredictable, there is a prevailing consensus indicating that the asset will potentially rally in the future. Signs of a possible rally are highlighted by a recent Finbold report that showed Bitcoin whales are increasingly buying in the dip.
At the same time, retail investors are also taking a stake in Bitcoin as the asset is viewed as a store of value in the wake of weakening global fiat currencies. As of September 27, Bitcoin holders had surged by over 4.5 million new holders.
Despite the uncertainty around Bitcoin’s price, the asset is consolidating below the crucial $20,000 level. By press time, the crypto was valued at $19,600, dropping by over 1% in the last 24 hours.
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