- The crypto market is heading into the weekend without clear momentum as the past week has been relatively quiet for Bitcoin
- Many altcoins still hold their steady upside momentum, though this appears to be slowing as investors become more concerned with where Bitcoin may be trending next.
- There are four factors that an analyst is closely watching that could provide BTC with better guidance in the short term
- This occurs as the cryptocurrency continues to build a fundamental fortress, as investors are still moving their holdings of BTC away from exchanges at a rapid pace.
Bitcoin and the aggregate cryptocurrency market are sending mixed signals to investors.
On the one hand, Bitcoin has seen historically low volatility that has occurred in conjunction with declining trading volume and liquidity. Meanwhile, altcoins have risen left and right, with many more than 100% this year.
It is possible that the liquidity and the trading volume of the reference cryptocurrency are being diverted in altcoins. If this is the case then BTC will not be able to bounce back until altcoins start to lose their recent gains.
There are some crucial factors to consider in the short term that could have an impact on Bitcoin’s next trend.
An analyst concludes that all of these factors work in favor of buyers.
Bitcoin sends mixed signals to investors as the consolidation phase persists
As of writing, Bitcoin is trading marginally at its current price of $ 9,170.
This is around the level at which it has been operating for the past week.
On some occasions, buyers tried to cause noticeable volatility, but each attempt to do so turned out to be short-lived.
This consolidation phase occurred despite the strengthening of the foundations.
One metric that shows the growth Bitcoin has seen on this front is the amount of BTC currently on the exchanges.
The data shows that investors are still moving their holdings away from exchange wallets at a rapid pace in favor of cold storage. This points to them adopting a long-term investment strategy.
Unfolded data aggregator talked about this in a recent tweet, while offering a Glassnode chart showing the declining balance on the exchange.
Image Courtesy of Unfolded. Data via Glassnode.
Here are 4 factors to consider to know the BTC trends below
Recently, an analyst explained that there are four main factors you are looking at for information on where Bitcoin will trend next.
It concludes that all of these factors indicate that an upward break is imminent.
“A few things about crypto market capitalization. 1 – More than 100 days and 200 days MA. 2 – Crazy accumulation volume. 3 – Decreased volume -> great move to come. 4 – As we take all the minima -> it is more likely to break upwards “.
Image Courtesy of Crypto Michaël. Chart via TradingView.
For these factors to influence Bitcoin’s medium-term outlook, crypto must first overcome the strong resistance between $ 9,500 and $ 10,000.
Featured image from Unplash. Charts and pricing data via TradingView.
