Bitcoin not likely to form an all-time high or ATH soon as BTCUSD begins consolidating

Bitcoin is on a consolidation phase currently. Data released by Skew, an analytics group, shows the probability of BTCUSD crossing $20,000 or higher is a mere 9%.

The Dow Jones Industrial Average posted gains of more than 900 points yesterday. The S&P 500 was up by approximately 3%. However, it is so far a completely different story today. 

Wall Street opened lower today as the US Federal Reserve will be addressing the media later in the day. Skeptics are already biting their nails. It seems people are less optimistic about the chance of the announcement of another relief stimulus.

 

Bitcoin enthusiasts believe it is a hedge against deflation

Several investors around the world view the humongous money printing practices by various Central banks around the world as rather rash and hasty. And that it is nothing more than a band-aid solution.

Printing more money and passing on the benefits to the common public might provide them the resources to survive the pandemic. And that is probably what governments around the world are doing. However, time and again, it has been proved that printing money brings a significant risk of deflation.

And then governments would need more measures to suck out all that money from the economy. That is where BTCUSD investors believe the investments in Bitcoin would shield them from any risk of deflation.

 

BTCUSD option chain analysis shows only a 9% chance of an all-time high or ATH for Bitcoin

Skew‘ is an analytical group researching on Bitcoin. They posted the charts online. According to their latest findings, the probability of BTCUSD crossing $20,000 or more by December is just around 9%.

The research is based on the open interest for BTC futures.

btcusd

Source: TradingView.com

Several optimistic and over-enthusiastic BTC followers claimed earlier that after the halving, Bitcoin would rise exponentially. That has not been the case yet. BTCUSD is on a consolidating phase currently. Here is the BTCUSD four-hour price timeframe.

On a more positive front, conservative and realistic investors used Bitcoin as an edge against the falling stock markets. And so far, that has worked like a charm!

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