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3 reasons why Bitcoin is in a Crab Market



Bitcoin has been moving sideways for a few weeks now. Again and again, investors hoped for a breakthrough above 40,000 US dollars, but it did not come. Furthermore, there was the more frequent threat of a crash well below $ 30,000, but the price moved up again. What are the 3 reasons for Bitcoin's sideways movement?

Reason 1 for Bitcoin's sideways movement: Uncertainty

A big component of Bitcoin's current sideways trend is market uncertainty. In the past few weeks, there have been several bad news for Bitcoin, which first triggered a price decline and then the sideways movement. 

First Elon Musk sharply criticized Bitcoin, then there were far-reaching bans on Bitcoin mining in China. New regulations and bans in particular weakened the bull market again and again in 2021. An uncertainty remains here that discourages many investors, especially institutional investors, from investing in the market. 

Reason 2: firmly established resistances

Fixed upper and lower resistances have established themselves for the Bitcoin price in the past few weeks. Several times it looked like the price could break up. However, the Bitcoin rise repeatedly failed at the $ 40,000 mark. Even when the price briefly exceeded this mark, the resistance set in again and the Bitcoin sideways movement continued.

The same applies to the lower resistance. This first established itself at $ 32,000. Then Bitcoin fell below $ 30,000 for the first time in a few months. In this case, however, a wave of subsequent purchases set in, which drove the price back into the range of $ 35,000. After several touches, the resistance - above and below - remained and the Bitcoin sideways movement continued to solidify. Without major external events, it is very unlikely that these will break anytime soon.

Reason 3 for the Bitcoin sideways movement: The nature of the Bitcoin price trend

As much as Bitcoin is dependent on external factors, the course of the price is repeated over and over again in the historical context. We are seeing bull markets that develop slowly over a few months and then explode. This is followed by price drops and a longer Bitcoin sideways movement until the Bitcoin price turns back into a bear market.

We recognized these patterns as early as 2013 and 2017/2018. These patterns can be traced through technical analyzes and forecasts can be made for the future. It is very likely that we are now in the Bitcoin sideways movement with the transition to the next bear market.

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