The crypto community has been waiting with bated breath for Bitcoin (BTC) to make the next move based on the consolidation around the $20,000 zone.
Market analyst Ali Martinez believes that a significant support zone between $19.1 and $19.7K or a notable resistance level at $20.9K has to give in for Bitocin to happen. Martinez explained:
“Bitcoin sits on an important demand wall between $19,150 and $19,700 where 575,000 addresses hold more than 375,000 BTC. If this support level holds, notice that BTC faces stiff resistance at $20,900. One of these levels must give in to trigger a major price movement.”
The leading cryptocurrency was hovering around the $19,870 area during intraday trading, according to CoinMarketCap.
Given that BTC dropped below the 100-hour MA, Martinez opined that a downswing might have been prompted and said:
“Bitcoin dipped below the 100-hour MA, triggering a downswing to $19,900. If this level fails to hold BTC, the losses can extend toward $19,300 or even $18,630.”
Source: AliMartinez
Crypto analyst Michael van de Poppe echoed similar sentiments, suggesting that Bitcoin should hold $19,500 to avoid cascading further down.
A recent comprehensive report by Glassnode pointed out that Bitcoin was not out of the woods yet because it required more time to form a resilient bottom, given that the share of coins held at a loss had to be primarily transferred to long-term holders (LTHs).
The market insight provider explained:
“This indicates that while many bottom formation signals are in place, the market still requires an element of duration and time pain to establish a resilient bottom.”
Meanwhile, the Bitcoin Lightning Network continues scaling heights after hitting a new all-time high (ATH) of more than 4,200 BTC.
The growth witnessed on the Lightning Network is happening amid Bitcoin’s price being on shaky grounds, suggesting that the development for adoption is taking shape even if the price falls.
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