Bitcoin (BTC) price has been facing some challenges in the recent weeks due to various external factors such as the Middle East crisis and the ongoing U.S.-led trade wars. Despite the efforts of institutional investors like Strategy and Metaplanet to accumulate more BTC, the market data shows that the appetite for long exposure has been decreasing. Glassnode data reveals that Bitcoin’s spot volume has been hovering around $7.7 billion, which is significantly lower than previous peaks.
One of the reasons why traders are cautious about Bitcoin price consolidation is the fact that the flagship cryptocurrency has not been able to achieve the same bullish gains as Gold (XAUUSD) in recent months. This is despite the U.S. dollar losing around 10 percent in value since President Donald Trump took office earlier this year. The market uncertainty caused by the differences between the Federal Reserve and the government on interest rates has also contributed to the overall decrease in BTC speculation.
Aksel Kibar, a well-known classical chart trader, has pointed out that Bitcoin price has been forming a potential head and shoulders (H&S) pattern in the weekly timeframe. While buyers have been trying to push the price higher, Kibar notes that Bitcoin must consistently close above $109k in the weekly timeframe to confirm bullish momentum. However, with the ongoing trade negotiations between the U.S. and other nations like Canada, Japan, and the EU not yielding positive results, the BTC price is expected to face a bearish outlook in the midterm. Coinpedia’s analysis suggests that Bitcoin price could retest $92k before reaching $120k in the near future.
In conclusion, Bitcoin price has been facing some challenges in recent weeks due to external factors and market uncertainty. Traders are cautious about BTC price consolidation, and the cryptocurrency is expected to face a bearish outlook in the midterm. However, with institutional investors continuing to accumulate BTC and efforts to push the price higher, there is still hope for a bullish momentum in the future. Share this crypto insight with your network and stay updated on the latest developments in the cryptocurrency market.