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Bitcoin is ready for a hard break, according to these 4 factors

Bitcoin ( BTC ) and the crypto money market are sending mixed signals to investors

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Bitcoin is ready for a hard break, according to these 4 factors.

On the one hand, Bitcoin sees one of the historically lowest volatilities that have appeared with declining trading volume and liquidity. On the other hand, altcoins continue to grow, many of which have seen an increase of over 100% since the beginning of the year.

It is possible for the cryptocurrency’s liquidity and transaction volume to switch to altcoins. In this case, BTC may not recover until altcoins start throwing their last winnings.

There are a few factors to consider in the short term that may affect Bitcoin’s next price movement. An analyst revealed that these factors were in favor of buyers.

Mixed signals go to investors as consolidation continues in Bitcoin

At the time of writing, Bitcoin is trading at $ 9,205. This is not much different from the levels traded last week. Buyers tried several times to lead to a significant volatility, but every attempt was short-lived. The never-ending consolidation phase emerged despite strengthening foundations.

One metric that shows the growth Bitcoin has seen on this front is the amount of BTC currently held on exchanges. The data show that investors move away from stock market wallets and move towards cold storage areas. This points to their adoption of a long-term investment strategy.

Data collector Unfolded also mentioned this situation in a recent tweet and showed a chart of Glassnode showing the balance in the stock market balance.

Bitcoin Price Charts
Bitcoin Price Charts

4 factors that will affect the Bitcoin trend

An analyst (@CryptoMichNL) explained that there are four main factors to follow to get an idea of ​​where Bitcoin will be in the next stage. All of these factors indicate that an upward break is close:

“A FEW THINGS TO WATCH OUT FOR IN THE CRYPTOCURRENCY MARKET:

1- 100 DAYS AND 200 DAYS ABOVE THE MA.

2. VOLUME BUILD-UP LIKE CRAZY.

3. VOLUME DECREASE -> MEANS THAT BIG MOVEMENT IS COMING.

4. IF WE PUT ALL THE LOW LEVELS IN FRONT OF US -> WE SEE THAT THERE IS A HIGH PROBABILITY OF BREAKING UPWARDS. ”

In order for these factors to affect Bitcoin’s medium-term outlook, the crypto asset will first have to exceed the heavy resistance between $ 9,500 and $ 10,000.

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