Currently, the price of Bitcoin is around $ 19,000. After this cryptocurrency has reached its all-time high, many investors are waiting for its growth to continue. What do analysts expect in the short term?
Bitcoin in consolidation
After an impressive rally to a new all-time record, Bitcoin (BTC) seems to have entered a consolidation phase. As of Monday, the largest cryptocurrency "is locked in the range of $ 18,000 - $ 20,000 ... having nearly doubled in value in the past eight weeks," says analyst Omkar Godbole.
"Large sell orders close to $ 20,000 and a steady decline in demand have led to a consolidation of prices," he adds, stressing that macroeconomic factors indicate a continuation of the bull market.
The current dollar decline and rising inflation expectations tend to force both institutions and retail investors to buy traditional warehouses of value, such as gold. This year, institutions are increasingly opting for Bitcoin, strengthening its use as a hedge against inflation. This trend may persist (for the next year).
- explains the analyst.
As Ray Salmond points out, periods of consolidation and pullback to retest basic support are extremely important in maintaining the strength of the uptrend.
"If Bitcoin is really in the bull market, investors will see (these) major and minor pullbacks as buying opportunities," he added.
What's next for the BTC price?
According to analyst and professional trader Rakesh Upadhyay, both Bitcoin and altcoins "may consolidate for several days before the next trend begins."
He adds, "buyers will now try to raise the price above the psychological resistance of $ 20,000." If they succeed, the price of this cryptocurrency could rise to around $ 22,700 in the short term and then to $ 25,000, the analyst believes.