Bitcoin has had a rough year so far, the war in Eastern Europe being the grandest cause for this shocking development. Late last year, and early January, all predictions pointed to a rosy year, with highs as much as $100K on the table. However, in the past few days, BTC–and indeed most crypto assets–were stuck in a tight trading range.
The narrow range is a cautious uptrend because of the holding run from institutional and long-term holders. Bitcoin bulls have their eyes on $50K, and with strength, it can go further up. As a result, there have been more traders who want to learn how to trade Bitcoin with NAGA and other platforms, hoping to ride on the same rally that brought BTC to over $69k in Q4 2021.
Trading Bitcoin has been tight for a while, thanks to a long ride of a narrow trading angle running for weeks—the narrow range has been frequent during the Covid times, with spontaneous breakouts that broke historical highs. It will take a lot for the coin to gain momentum, with a bullish market depending on the action of long holders who kept the crypto coin well-placed below the $41K mark in recent weeks.
Bitcoin’s State of Affairs
Trading at over $47K, Bitcoin remains a force in the crypto space and the entire financial segment; it is a bull that might soon break out and hit $50K, as the tight range seems to weaken. The FED rate interest hike had a strong bearing on the coin when announced, and so did the war in Europe that hit many markets all over the world. In the past 24 hours of this writing, the coin has been choppy, with support well above $46K. A few weeks ago, it was struggling below $40K, printing higher in the past trading week on the back of improving fundamental factors.
The push above $40K with steady increases that have the support held at $46K in the past 24 hours is a technical measure that signals positivity in April. Narrow ranges have affected the coin before, and those in March indicate more things to expect in the new month and later in the year. The largest downward trend this year was because of some known factors debilitating the world economy. It remains uncertain how Bitcoin will exactly perform, as the situation in Ukraine seems to be escalating, and interest rates are on the rise in many markets set by respective central banks.
How Does Bitcoin Help Altcoins Out of Narrow Ranges
The likes of SOL and ETH follow a pattern curved by Bitcoin; this has been the case for years. Therefore, with 50-100 moving averages suggesting a narrow range for Bitcoin lately, a likely scenario is that other crypto coins are in the same mood.
Bitcoin commands up to 50 percent liquidity market share in the space—it is a giant whose movements matter a lot. Major news outlets likely focus on Bitcoin whenever something moves in the crypto-space; and since the technologies have a stronghold on each other, a ripple effect is likely in the same space. Skeptics, spelling doom and gloom, are likely to use Bitcoin to spell out positives and negatives, with other smaller players and spectators in the game.
However, some outliers exist in the market, where altcoins enter a bearish run while Bitcoin does not reach its breakout point to hit a significant high over a short time. The reverse can also happen, where Bitcoin becomes less affected by events spelled out in the markets. Since BTC is more stable, and well understood than most, it might likely hold out more in the event of economic turmoil. That said, the largest crypto by market cap is a driver that helps remove altcoins from tight ranges.
Bitcoin narrow ranges signal the hold institutions and long-term holders have on the coin. However, they also tell the story of more activity in the market to predict where the prices might peak during the year. With uncertainty all over, it will take something like the 2021 rally for crypto stocks to outdo the November 2021 high.
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