Buyers and sellers in Bitcoin markets continue to jostle for position as Bitcoin prices dropped on the seventh straight day. The world’s largest cryptocurrency has been somewhat stagnant in recent days. Some analysts have suggested the interaction with the 100-period moving average is providing support on the bottom-end.
Much of the stagnation of the popular crypto has been attributed to temporary bullish exhaustion after month-to-month rallies returning prices above $10,000. At the time of the publication, Bitcoin was trading at $9,939, down some 2.39% on the day.
CoinDesk analyst Sebastian Sinclair said the struggle between bullish and bearish pressures was likely to continue.
“Bitcoin’s interaction with the 100-period moving average on the daily and weekly charts have provided strong regions of support in the past and may do so again. Exhaustion caused by low levels of total daily volume and market activity raises doubts about the direction for the mid-term.”
Sinclair cautioned investors that if demand does weaken and give way to bear-side pressure, there were risks of a more significant slide over the coming weeks.
“Should the bulls lose the on-going stalemate in buying and selling pressure, bitcoin risks falling to weekly supports located near $7,560 in the coming weeks.”
Is a further decline imminent?
Chart analysis suggests Bitcoin prices are not yet showing the bullish reaction typical of this type of moving-average patter. However, there remains the possibility of gains to be made should the crypto close the day above $10,360.
Although, while the technical read is still bullish, a close below $10.047 could suggest a further decline is imminent.
The message for investors is to be patient and hold for another few days until the current slowness plays out. While sideways trading can pose risks for new investors, the medium-to-long-term projection for Bitcoin remains strong.
The fourth-quarter is traditionally a period of strong trading for Bitcoin. And, with certain bullish support for the crypto, a positive wave is expected.
The question for investors is when, and how any short-term fluctuations can be effectively managed?