Recently, the bitcoin price has been hovering at around $10,000. During Thursday, the price went up above that level, but during Friday it has fallen back to being four-digit again.
At the time of writing, bitcoin is trading at around $9,800, according to numbers from Bitstamp.
“Right now, we are in a phase of doubt and hesitation, which means that volatility, i.e. the difference between the highs and the lows, is reduced. The market does not know what to expect next, and therefore the trading is characterized by uncertainty and nervousness”, says crypto expert Totte Löfström to Trijo News.
Increases the risk of a decline
During the week, bitcoin’s total market cap has dropped – from around $190 billion to around $174 billion. This is a decline of over eight percent.
Bitcoin currently represents 64.5 percent of the total market cap of all cryptocurrencies, according to Coinmarketcap.
“The ‘dangerous thing’ in such situations is that the longer the price stands still around a certain level, the more the risk increases that the next big change will be a decline, says Totte Löfström.
“The longer the price stands still around a certain level, the more the risk increases that the next big change will be a decline”
Now, many are wondering where the bitcoin price will head next. According to a technical analysis by Coindesk, the price must rise above $11,120 in order to revive the positive sentiment in the markets.
But then the price has to break through the resistance level of $10,200 with the help of high trading volumes.
