Another week and another non-positive news regarding Bitcoin’s price. The world’s largest cryptocurrency has rarely seen a price hike lately. Which isn’t that surprising considering what’s happening around the world. It has been unable to break over $40K, with analysts not impressed by the latest price developments.
While there have been slight gains in the past 24-48 hours, the overall sentiment is that the price is on the downside. On the bright side, oil prices have somewhat consolidated, and that might be the spark Bitcoin needs to finally go on the price run we all expect.
Bulls Attempting to Break the Deadlock
Bitcoin saw a bit of a squeeze when bulls attempted to crack the $40,000 resistance. It’s currently trading close to the mark but still can’t go over it. It reached a psychological high on Tuesday before returning to previous levels. The slight price hike is mostly due to the EU’s rejection of a mechanism that bans PoW algorithm cryptocurrencies. And while it’s a significant move compared to USA’s recent crypto news, it didn’t have the price impact many believed it would.
The world’s largest cryptocurrency is still consolidating, but many of its altcoin pairs are dropping. Ethereum is going flat too, so it’s not exactly a great time for investors. Or it’s just the perfect time to jump into the market if you see each price drop as an opportunity. The main problem is that the future is kind of obstructed, with no one truly able to predict what happens next.
The pending global food and financial crisis after two years of COVID and now a war in Ukraine has caused a lot of trouble for traditional royalties. Bitcoin has followed suit. While it has remained practically unmoved on daily timeframes, the market has been locked in a downward trend for months. There might be a light at the end of the tunnel, though. Experts are soon expecting a bullish outcome based on the daily close, which is now at $39,000.
Current On-Chain Volume is Highest in Bitcoin History
The current on-chain volume of $39,000 is being called the ‘mother of all consolidations’. It’s the highest on-chain volume in Bitcoin’s history thanks to the fact that around $775K worth of BTC was moved at a price point of $38,700.
Accumulation trends reinforce the $38K-$39K bracket that’s been popular with whales recently. Many believe that the on-chain volume is proof that we’re in for a bull market soon, although there’s no ETA on that coming. The fact remains that the world needs to be put in order before that happens. The COVID crisis has struck life hard in the past two years, and the latest negative developments in the Russia-Ukraine war are not giving us hope.
The world needs to slow down so things can return back to normal on the crypto and financial market. There are a few signs of optimism here and there. If Bitcoin keeps the on-chain volume and the price of crude oil continues to consolidate, the $40K deadlock may finally be broken.