The most valuable token in the world of cryptocurrencies trading has experienced a few weeks of volatility thus far in 2020, but not as much as previous years. Bitcoin remains a volatile investment that is not for the faint of heart, but price action is not as hectic as it used to be. Going into the final week of February, Bitcoin is sticking close to $10,000, a price target that makes sense to many investors, but actual resistance is closer to $9,900.
On February 23, Bitcoin buying volume was slightly higher than its counterpart selling volume, but it seemed as if many traders were jumping back into the market almost as soon as prices dipped below the support level of $9,900. This behavior suggests that day traders are feeling more comfortable operating within narrower ranges, and they are likely relying on technical strategies such as Bollinger bands.
In the past, whenever Bitcoin went through a period of sideways trading, investors could almost always count on a sudden and bullish push beyond $10,000. Some analysts feel that such a move should begin as February comes to an end. What optimist traders would really like to see is a situation whereby resistance forms around $10,300; this would likely result in an even more bullish push towards $11,000, and it would make day traders very happy all through March.
At the Chicago Mercantile Exchange, however, the sentiment among futures traders was not as bullish when the market closed for the weekend on February 21. This could change once traders come back on Monday, but the reality of Bitcoin futures in 2020 is that traders are not as enthusiastic as they were last year. One of the problems in this regard is a lack of fundamentals. Moreover, institutional investors seem to be getting tired of waiting around for the Securities and Exchange Commission to approve a Bitcoin exchange traded fund.
The more realistic projection for Bitcoin in the short term is that the token will likely hit the $10,200 mark during March, but it may spend a few weeks trading within a narrow range, thus making a trip towards $11,000 less certain for next month.