After Bitcoin’s small bounce and rally up to $7,695, the digital asset has seen very little follow through and remains at around $7,400. BTC has been trading sideways for a week now and trading volume has been decreasing.
Bitcoin is currently looking to break above the 26-period EMA at $7,500 but there is a lack of momentum for the bulls. Overall, Bitcoin is still in a downtrend as the $7,600 area remains as a strong resistance line.
Are Investors Leaving the Crypto Market?
According to Peter Schiff, Chairman of SchiffGold and stockbroker, most assets and markets are outperforming Bitcoin right now.
Schiff mentions that Bitcoin is a non-correlated asset because it is in a downtrend while the rest of assets are rallying.
It is indeed true that many markets around the world are hitting record highs. For instance, the US stock markets are exceeding all expectations as there is a lot of optimism over the US-China trade talks.
Gold Futures also broke above $1,500 yesterday and it is in a significant uptrend since December.
Is Bitcoin Really That Behind?
Although the end of 2019 hasn’t been too great for Bitcoin and the crypto market in general, Bitcoin is still up more than 100% since January 2019. According to Google, interest in Bitcoin has gone down, however, it seems that institutional interest in cryptos is growing.
According to an older article posted by BitcoinMagazine, there is a need for regulations in the cryptocurrency industry as institutional-grade trading of cryptos is booming.
The monthly chart for Bitcoin is also favorable as it is in an uptrend currently. The digital asset set a bottom in December 2018 at $3,156 and experienced a massive 335% bull run until June 2019. The bulls are now trying to set a higher low compared to the bottom and seek continuation afterward.
The upcoming Halving event for Bitcoin is also a crucial factor that can affect the price of Bitcoin heavily. Historically, the event has always been extremely positive for Bitcoin.