Bitcoin opened Monday in a slightly-positive territory as investors’ focus shifted towards risk-on markets.
The leading cryptocurrency slipped marginally during the early morning trade. It managed to secure a weak bounce as the session matured, establishing an intraday high of $7,131.99.
The move brought the price up by 1.20 percent but failed to maximize it into a big move. As of 14:01 UTC, bitcoin was trading 0.31 percent higher at $7,133.
Big Move Coming as Bias Conflict Grows
Bitcoin’s latest move on Monday kept its price on a flat trajectory. The cryptocurrency continues to trend horizontally while awaiting a big move to either side.
So it appears, traders are not willing to buying bitcoin at local tops – near $7,200-7,500. At the same time, they appear least confident about closing the price below its local lows – near $7,000. The conflict has effectively locked bitcoin inside a tight trading range, accompanied by a dwindling trade volume.
The chart above shows the cryptocurrency inside an interim Symmetrical Triangle formation, confirmed by two converging trendlines. So it appears, the bitcoin-to-dollar exchange rate is testing the lower trendline as support and the upper trendline as resistance.
A close below the Support could propel the price towards the redded area, as shown on the daily chart in the above section. Such a move could appeal bears to open short positions towards $6,500 – the ceiling of the redded section.
Conversely, a pullback from the Symmetrical Triangle support could have traders open a long position towards the resistance, which coincides with $7,500.
No Capital Injection into Bitcoin
On the larger timeframes, bitcoin is looking to continue its downtrend, which could take its price to as low as $6,000.
Part of the issue is the lack of new money into the cryptocurrency market. Investors are actively taking their positions out of haven assets ever since the prospects of a US-China trade and Brexit deal have eased. As NewsBTC covered earlier, the global equity market late last week closed on record highs after Washington and Beijing agreed to sign a partial trade deal.
The U.K. equities also notched higher after Boris Johnson’s conservative party’s victory in the parliamentary election.
Like bitcoin, other safe-haven assets also suffered as investors remained focused on risk-on markets. They include Gold, the Japanese Yen, and the US 1o year Treasury Bond – all of whom fell sharply from their year-to-date highs.
The case for correlation between bitcoin and other safe-haven assets has grown a little stronger, as gold took a dive, it dragged bitcoin down with it.@AsherWestropp analyzes the fall: https://t.co/PBEjDGheXu pic.twitter.com/fl3WmZLi3r
— BLOCKTV (@BLOCKTVnews) November 10, 2019
All focus now remains on May 2020’s halvening event, wherein the reward to mine bitcoin would be cut by half from 12.5 BTC to 6.25 BTC. Bulls believe it would make bitcoin scarcer which, in turn, would make it more appealing to institutional investors.
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