Bitcoin Price Faces Major Resistance at $4,000 Despite Positive Indicators from Traders
This year has given an optimistic outlook on how Bitcoin is steadying its price. Institutions are starting to get involved, even with the price dump, and even Nasdaq and Bakkt are contributing to the developing industry. However, despite the fact that all of these activities should point to a thriving crypto asset, Bitcoin’s price is still being met with resistance as it approaches $4,000. Current information from The Tie shows that there could be a correlation between market sentiment and market cap.
At its highest value, the price of Bitcoin was largely led by sentiment, skyrocketing in December 2017 when the sentiment was negative. However, the price followed along with the sentiment, crashing down. Ever since that year, the sentiment and the price have gone hand in hand, and the rising sentiments has started to see a downward slope. From January to February, the sentiment switched gears to a positive stance.
As the sentiment changed, Bitcoin’s market cap went from -0.05 to +0.29. If Bitcoin wants to be able to finally meet and push past the $4,000 milestone, the sentiment has to trend upwards as well. As long as the sentiment remains where it is or falls, then Bitcoin’s price will remain below the threshold.
The Tie posted a tweet regarding these movements, demonstrating the changes in sentiment lately.
30 day average market cap change has also increased from -.05% to +.29%. pic.twitter.com/P3DZQU03hW
— The TIE (@TheTIEIO) March 13, 2019
In the seven-day charge posted by the Tie on the aforementioned tweet, users are able to see a comparison of price, sentiment, and tweet volume. Based on the chart, it appears as though the price is remaining constant, even though the market sentiment is seeing an increase. Though the tweet volume was down on the 11th of March, it has now caught up, signifying that Bitcoin is safe.
Presently, the price of Bitcoin is $3,924, with 0.35% growth in the last 24 hours.