For almost 2 weeks now, it seems Bitcoin has been between 94K and 100K price range. It kind of looks now like a waiting game where some believe this is a buildup phase for some massive breakout, and well, the others seeing a risk of decline.
What Do I See?
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I'm not here to side with anybody with regards to price action as I know you can't fully predict any market, much less a volatile one. I'm thinking more about the strength Bitcoin is demonstrating at this level. Despite the lower demand BTC is having as compared to when Trump was elected and it jumped (no, flew) from 60K to 100K in literally days, it's still showing some positives. Accumulation hasn't stopped, it's just moving at a slower pace and that is the positive.
Demand to Price Ratio:
The little I know is that when demand stays above zero, it suggests that buyers are still buying even if it's not rushing in. This would mean that the market is in a healthy consolidation period rather than heading towards a correction. Just the fact that BTC has been able to hold above 94K consistently, to me it shows that the long-term investors are comfortable with the current price. I think that if demand was in the negatives, we should have been seeing some sharper dips.
What May Likely Happen:
From the way things are looking, if BTC pushes to go above 100K, it could drive sentiments for people to start buying because they would expect a new ATH and that would shift the momentum in favor of bulls. That's the ideal scenario which I'm really hoping for. But well, if it breaks below 94K, especially the retailers would be fearful and that might drive some selling pressure. But if that case happens, I think the institutions would take advantage of the dip to buy more.
At this point, it looks like neither bulls nor bears seem to have full control and that's why I think traders are hesitant to make a move to sell or buy, hence keeping the price a little stable at its current range.
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Long Term:
Yet, in all this, don't forget that the long-term outlook of Bitcoin still looks promising and I'm of the opinion that regardless of what happens in the short term, BTC will always be profitable in the long term.
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