Bitcoin (BTC) has recently consolidated below the $20,000 level for the longest time since late 2020.
Notwithstanding the persistent bear market, Bitcoin (BTC) has struggled to keep its head up, with assistance from several psychological support points. However, the asset’s recent fall below $20,000 has kept it underneath the zone for an elongated period last seen two years ago.
BTC is changing hands at a delicate position around the support at $19k. The asset started the day in this same position. Despite keeping its head above the support, today marks the 14th consecutive day that BTC is trading below $20k, indicating the massive resistance the asset is facing at the $20k zone.
The last time BTC traded below $20k for this long was two years ago – in Q4 2020. Bitcoin’s elongated period below the $20k level in 2020 was followed by the asset’s defeat of the zone, as it soared to a new ATH above $63k in the following months.
Despite revisiting and occasionally trading below the $20k zone, BTC has always summarily bounced back. The two weeks recently spent below this level have been the longest the asset has seen.
Once touted as a potent hedge against inflation, BTC has recently been hammered by growing economic concerns. While some have insisted that the asset’s underperformance in such times of economic perils shows that it is unreliable as an inflation hedge, others, such as Anthony Scaramucci, believe BTC can hedge against inflation, but not just yet, as it is still in its infancy.
BTC is changing hands at $19,033 as of press time, down 2.09% in the past seven days. The asset got knocked off the $20k point on October 7 and has since been kept below the level by the bears.
Additionally, sentiments are looking pretty bleak for the firstborn crypto. There appears to be a weak US investors’ buying pressure, as revealed by the Coinbase Premium Index. Further, the Fund Premium also reveals a low fund/ETF pressure on individual and institutional investors.
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