Bitcoin (BTC) shows a consistent bearish pattern as it fails to cross the $20K mark for the last seventy days. Despite various assumptions that BTC will recover, the world’s largest cryptocurrency keeps plunging downwards almost every week. Seeing this week’s performance, many wonder ‘will BTC ever break out of its resistance zone?’
Bitcoin is the largest cryptocurrency that makes or breaks a market. Almost every altcoin is affected by BTC movements, and this is why keeping up with Bitcoin prices is quite essential for every trader.
Ever since the Terra ecosystem crash, the crypto winter has prolonged for months with no significant progress. Traders who had quit their daytime jobs to focus on crypto trading are starting to regret their decisions seeing that there is no improvement for a long time.
Bitcoin has maintained its $20K resistance zone for seventy days now. Experts believe this consistent price is igniting fears in various traders because the whole crypto market is holding on to BTC right now.
According to the Crypto Fear & Greed Index, the investment and trading market is indicating extreme fear in its patterns. The market has lost all hope in Bitcoin prices because of the prolonged winter that doesn’t seem to end all.
This fear exists because the BTC bear market has crossed the record of the 2018 Bitcoin bear market and the 2020 pandemic market crash.
BTC resists inflation market effect
This week, the Federal Reserve released a CPI report indicating a 9.1% inflation in the month of June. As soon as the report dropped, the stock market began to decline from its recovery levels.
Many believed that BTC prices would also drop during this storm, but the cryptocurrency managed to hold itself during the breakdown. This surprising improvement proves the claim made by experts that crypto is unrelated to the traditional economy.
As of now, Bitcoin seems to be recovering from its resistance zone as it rose to over $20,500 today. Research firm Santiment says the crypto prices are growing because it has no correlation with the equities.
Bitcoin is gradually covering its resistance zone and might show a potential breakout in the coming weeks. The experts are more bullish than ever because once crypto abandons the traditional asset market, it is most likely to rise above at a rapid pace.
Furthermore, the blockchain industry has also been growing in the background as new startups and projects launch almost every month. This will most likely contribute to a strong breakout in the coming weeks.
The current bear market seems to have no effect on the overall industry. The NFT projects are still dropping, developers are experimenting, builders are still building, and with each arm working, Web3 is growing day by day.
Bullish traders believe the 70-day resistance zone might be alarming, but most people are getting used to it because they know the crypto market will rise once it experiences a breakout.
According to Felipe Rieger from Klever, Bitcoin is most likely to rise in the coming years. When asked about his predictions for Bitcoin in 2022, Rieger said, “I think Bitcoin has reached the market low already. I can see the market sentiment changing but it also depends on the market’s economic factors.”
Bitcoin’s upcoming 2024 haul will most likely push the prices to even higher than now. “It might even cross an all-time high USD mark in 2024,” says Rieger.
Is it a good idea to buy or keep Bitcoin? Bullish traders firmly agree!
Currently, Bitcoin trades at $20,622 with a low of $20,518.