Bitcoin continues to trade sideways in a tight range. The largest cryptocurrency is faced by two prospects, break above $10K, or slide below $9K. The latter looks more likely with sentiment across still indicating a potential for more gains. But now, one key technical development could have the last impact that finally sees Bitcoin reach $10K.
For the first time since February, Bitcoin has confirmed its golden cross. The crossing is confirmed once the 50-day moving average crosses over its 200-day moving average.
This was achieved on Tuesday. Hours later and Bitcoin price is yet to react. Calm before the storm? In the past, this has had a bullish impact. Investors now expect Bitcoin to break above $9,800 and make $10K its new support.
One of the key reasons that continue to keep Bitcoin under $10K despite all the positive indicators is low volume. Bitcoin is recording daily volumes of under $35 Billion. This is not offering adequate momentum to break higher resistances and keep the above crucial supports. In a truly bullish market, Bitcoin records the daily trading volume of over $50 Billion.
Some analysts are calling for a further pullback below recent lows of $9,300. A pullback allows investors to reaccumulate before attempting to break higher resistances. The latest major drop to $9,300 was expected to see investors gather enough momentum to break $10K. Its failure has been an indication that Bitcoin might need to dip below $9K, possibly to the $8.8K support before it can break above $10K.
Bitcoin’s Flop Is Good For Altcoins
Although Bitcoin’s hesitation continues to hold back altcoins, a dip could be a major gain for altcoins. Bitcoin’s continued sideways trading and potential drop could soon see it lose dominance to altcoins led by Ethereum.
Earlier in the year, there was a hint of the altseason coming back. This narrative was squashed with the break of the COVID-19 pandemic which shifted all attention to Bitcoin. And when this started fizzing out, the Bitcoin halving event took center stage.
If Bitcoin does not show real bullish prospects by breaking $10K soon, investors could turn to altcoins and reignite the altseason.