Bearish momentum paused over the weekend – The course of Bitcoin takes advantage of the weekend to stop falling. Indeed, the Bitcoin price is stagnating around $26,800. At the same time, Ethereum faces new network problems. Can BTC regain some color early next week?
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Bitcoin price climbs 1.3% in 24 hours
The increase experienced in the last 24 hours is not enough to erase the fall over the week. However, the price of Bitcoin is in 1.3% increase in 24 hours :
The price remains in the red over a week, it shows a 8% decrease. In one month, the course 11% drop. The BTC/ETH pair holds in 24 hours, but it fall of almost 2% in seven days. Once the bearish momentum is over, could Ethereum price recover?
The price of Bitcoin has largely outperformed other financial assets since August 2020
August 10, 2020 is a special date for MicroStrategy. Indeed, this date corresponds to the when the company decided to adopt an accumulation strategy on BTC. Since that day, the company has accumulated no less than 140,000 bitcoins for a average price of $29,803. As BTC traded around $11,000 as of August 2020, it is currently trading around $27,000.
Therefore, Bitcoin largely outperforms gold, which is one of the safe haven assets. That’s not all, it also outperforms risky assets like the S&P 500 or NASDAQ. Web giants like Apple, Microsoft or Amazon also fail to do better than the king of cryptocurrencies.
Will Bitcoin price hold support at $26,700?
The price seems to be marking a deviation below support at $26,700. Buyers are reacting at this level:
If the deviation is confirmed, the price could head towards the next resistance around $27,600. Attention, a new rejection could occur at the level of the bearish trendline. She has been rejecting the course for a few weeks. The deviation scenario is supported by the RSI. Indeed, a bullish divergence seems to set up in 4 hours. To confirm it will require a fence above 50. A break of the bearish trendline could lead to bullish volatility.
The price of Bitcoin has largely outperformed other assets such as gold or the S&P 500 since August 2020. However, the price is struggling to return permanently beyond the polarity zone located around $30,000. Will the buyers wake up and hold the support at $26,700? Hopefully next week will be less red than this week!
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