Why Is Bitcoin Still Hovering Around 5 Figures: Analysts Explain
Why is bitcoin still not reaching the $13,000 price point is the big question the crypto analysts are wondering these days but some of them could have the answers. A few believe there are three main reasons why this is the case and in the coming altcoin news, we read more about it.
After the number one cryptocurrency struggled to hold above the $11,000 price point earlier this week, Bitcoin succumbed to selling pressure and fell below the $10,000 level for the first time in three weeks. Before it dropped, some crypto analysts predicted that $10K would be a good bounce point as the price represents huge psychological support. This was not the case however and even after it made a strong upside move from $9,500 and $10,450, Bitcoin is still having a hard time to stay above $10,100. Letâ€™s find out what the reasons are.
Back a month ago, Primitive Crypto founding partner Dovey Wan attributed the sharp correction due to the PlusToken Chinese Ponzi scheme which managed to acquire more than 200,000 Bitcoin and more than 800,000 Ethereum from naÃ¯ve investors in the country. According to her, not all of the members of the PlusToken team has been arrested and the data from the cybersecurity auditing company Peckshield shows that more than 1,000 Bitcoin was transferred recently to Bittrex, and Huobi from the PlusToken accounts. She is also convinced that the scammers are shifting their funds into small batches on different exchanges and that she found a chat where the Chinese traders are saying that someone has been dumping 100 BTC on Binance.
The CME Bitcoin Futures gap is another reason to likely influence the price of the number one cryptocurrency due to the existence of the gap as the reason why it struggles to reach a level below $10,000. The gap is mainly there because of the Bitcoin price moving over the weekend while the CME futures are closed. The gap is also the reason for concern since the traders are setting the price as a target that has to be filled at some point when a certain asset corrects itself.
As the third reason why is bitcoin not reaching a five-figure position is the consolidation phase that will continue to bounce bitcoin between $9,000 and $14,000 until an exciting move and momentum build up over the 2020 halving event as we noted in the latest cryptocurrency news.
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