The Bitcoin price has lacked directional stability in recent days and weeks, and both buyers and sellers have reached a dead end.
Bitcoin continues to be traded in the middle of its long-held trading range between $10,200 and $11,200.
Although it is closely correlated with the stock market, yesterday’s intense stock rally was not enough to pull Bitcoin Freedom higher and the crypto-currency still remains below several key levels.
One analyst firm continues to believe that the overall trend of the traditional market is critical to that of Bitcoin.
They note that President Trump’s recent tweet regarding a possible second round of $1,200 stimulus measures has marked a local BTC low.
Bitcoin and the entire crypto market is still lacking any momentum, which is damaging investor sentiment and making it increasingly unclear where the market might head in the coming days and weeks.
It is certainly not the first time that the crypto-currency has experienced such intense sideways movements, but there is no doubt that each and every one of these movements usually leads to a massive turnaround.
Where the next trend begins could depend on the progress made in connection with the second round of economic activity in the US – because data shows that developments in this context have a massive impact on BTC.
Bitcoin struggles to gain momentum, is traded for $10,600
At the time of writing, Bitcoin is trading slightly upwards as its price is just over $10,700. This is roughly the price at which it has been traded in recent days.
The macroeconomic trading range in which it finds itself is between $10,200 and $11,200 – although a more compressed range between $10,500 and $10,800 has now been established.
Until one of these key levels is breached, its short-term prospects are likely to remain unknown.
Analyst firm: Trumps tweets influence Bitcoin’s market dynamics
According to one analyst firm, Trump’s recent tweet regarding a possible round 2 of stimulus payouts marked the local Bitcoin floor.
„Did Trump’s ambiguous update on the stimulus package mark the local ground for Bitcoin? According to our data, BTC has bounced $10.55 thousand and has gradually risen since that announcement, which has fueled the economic debate on crypto platforms“.
Image courtesy of Santiment.
Although this data does not show a one-to-one correlation with the stock market, it appears to show that Bitcoin’s short-term trend is still largely dependent on major economic developments within the U.S.