Story Highlights
BTC price witnessed a sudden inflow of liquidity, pushing the price above $30,000, temporarily suppressing the bearish trajectory
Additionally, altcoins started to make small gains, suggesting that the star cryptocurrency’s dominance could change its bullish swing
Bears have capitulated to the market from time to time. This has hampered the growth of the entire cryptocurrency space, especially the price of Bitcoin. The price has been subject to extreme speculation; it has been experiencing frequent small upticks for more than a few months now. This shows that liquidity is flowing from Bitcoin to altcoins and vice versa as altcoins have also failed to rally strongly to the north.
Amid these market conditions, a glimmer of hope flashed as Bitcoin prices edged higher above $30,000 after a week of narrow consolidation. The price rise was the result of aid from traders who capitulated during the past week’s price decline, according to data from Santiment. Volumes surged significantly, psychological resistance was crossed, and sentiment turned from negative to positive.
Hence, the behavior of traders indicates a shift in focus away from other coins or altcoins and specifically back to Bitcoin. Hence, it can also be said that traders might have become obsessed with the pre-halving phase, which could have a significant impact on the price of the flagship cryptocurrency thereafter. Despite the small gain, a bearish cloud continues to hang over the Bitcoin price as validation of the upside is yet to occur.
Although the price surged above the critical resistance level, it is struggling to surpass it, which might confirm the rise above the bearish tether. Moreover, the RSI has just registered a bearish flip, which suggests that the bulls might have been trapped at $30,000 while the bears might drag the price below $29,500 again.
Therefore, if the price holds above the critical support until the close, a healthy and sustained rise above $30,500 is possible. Otherwise, the Bitcoin (BTC) price might continue to hover between $29,500 and $30,100 for an extended period of time or until another wave of fresh liquidity enters the market.