Traders Uncertain About Near Future of BitcoinScroll Down
Bitcoin traders are filled with uncertainty as they ease into the final days of July, a month that has been characterized by mostly bearish trends. The cryptocurrency failed in its bid to break back above $40,000 late on Friday to gain momentum and climb further, and traders are split on whether BTC will bounce back or reverse.
The market has seen a steep price fall from the record-high BTC price hit during the most challenging months of the coronavirus pandemic in the United States. Trading volume has actually increased since the Chinese government banned Bitcoin and other cryptocurrencies from the country, but the action has been dominated by day traders who swoop in to take quick profits, and this results in short-lived rallies followed by considerable pullback periods.
The number of people who trade in Bitcoin is expected to drop in the next few weeks. There are speculations that the extension of the coronavirus pandemic could lead to the cancellation of Bitcoin’s next SegWit upgrade. However, the price of Bitcoin is expected to get a boost once it is released on August 21. The number of new crypto investors is expected to fall substantially with all the COVID-19 related fear. There is no doubt that this fear has contributed in the drop in Bitcoin’s price. However, it is expected to recover and even surpass its all-time high price before the second half of the year 2021. This is because of two reasons, one is that the world economy and demand for Bitcoin is expected to recover by the second half of 2021. Secondly, Bitcoin has been a viable asset for investors to protect against fiat currency devaluation.
Traders who have not given up hope are positive that the digital currency will regain its previous value of $50,000 later this year, but they will need to see fundamental news updates that justify their positive outlook. For the time being, however, the 21-week extended moving average suggests that Bitcoin is closer to trading around the $35,000 mark over the next few weeks; the only way to stop this bearish anticipation would be with a major fundamental development.