After weeks of a bullish trend and price drops, Bitcoin saw some gains over the past week. The massive fluctuations in the crypto world and other events made the leading cryptocurrency pretty volatile, with huge plunges into 4-figures. That has recently changed, though, after 5-day price gains that saw it shoot up to $10.6K.
After testing the $11K range, optimism grew among crypto owners. However, it has since faded away after a spinning-top candle on Wednesday saw a two-way business over the past 24 hours. The market is once again indecisive with Bitcoin stabilizing around $10.6 K.
A Wild Ride
The last few months have been a wild ride for the world’s leading cryptocurrency. Things were pretty quiet for a while and the peak around $13.8K, Bitcoin saw a plunge that took it back to the $9K level. In technical terms, this formed a so-called triangle which a rough balance in the bull-bear trend.
For weeks, experts have been optimistic about a big Bitcoin break out, and the latest shoot up to nearly $11K was supposed to be it. However, things have quieted down over the last day or two, with Bitcoin stabilizing around $10.6K.
We think that with the current $10,500 support it could rise in the near term. Strong gains around this support have led many to believe that now’s the time to trade, although we wouldn’t rush things that fast. If the price fails to break the $10,700 or $10,800 levels, it could fall down below the current support and see further price declines.
Major UK Political Events Are Shaking Things Up
The recent political rumblings in the UK are surely hurting Bitcoin’s price. Bitcoins and blockchain start-ups were incredibly popular in the UK a few years back. However, new regulations and the UK’s looming Brexit deal could spoil what was a potentially great cryptocurrency market.
The so-called no-deal Brexit scenario is most likely one of the reasons for the recent price bump, but it’s doing Bitcoin no good in the long term. If the UK is set to leave the EU without a deal, fintech companies will suffer since they won’t have an easy route into Europe. The whole uncertainty surrounding Brexit is sending ripples throughout the world, and Bitcoin is highly affected by it.
It’s not just Bitcoin affected. Altcoins such as Ether are dragged around in the mud by the indecisive market and political events, with Ether dropping nearly 4%. Bitcoin’s price rally stall could spell even worse news for altcoins.
Experts are wary when it comes to predictions. A bearish daily close shouldn’t be ruled out. The spinning top represents the buyer’s exhaustion and things change pretty soon in the world of Bitcoin and cryptocurrencies. If bulls were recently strong the spinning top wouldn’t have even appeared in the first place. Due to this, a correction may be in order.