Bitcoin is at an Indecisive Stage, Ongoing BTC Market Trend says Major Dump Incoming
Stuck In A Tight Range All Week
After hitting the yearly lowest at $3,200 in mid-December, Bitcoin went to $4,245 level in that month itself. Starting the month at a positive note, January's highest of Bitcoin has been $4,090 while the highest mark of February has been at $4,199, as per the data provided by Coinmarketcap.
Since December high, Bitcoin has been going downwards o $3,400 level, however after hitting the February high, Bitcoin, to the most part traded around $3,850 and registered an upward shift in price movement.
At the time of writing, Bitcoin has been trading at $3,863 with 24-hours gains of 0.35. The leading cryptocurrency, meanwhile, has been managing the daily trading volume of $7.2 billion, which is constantly moving downwards after hitting $10.8 billion a week back.
Bitcoin price chart, Source: Coinmarketcap
The crypto market in tandem with Bitcoin is in green as well but is not seeing much action currently as the highest gains in the top cryptos are seen between 2 to 4 percent range by Litecoin, EOS, and Binance Coin. While today's highest gainer is Digitex futures (DGTX) by about 10 percent only.
2018 Beginning Was When Market Was More Indecisive
The Bitcoin market currently isn’t able to make up its mind as for in which direction it is planning to go from here. Though the losing streak of six months has been broken by February’s green candle, on the basis of 2015’s March performance, Bitcoin might come in like a lion and leave like a lamb as we discussed in our previous article.
Crypto analyst Willy Woo shared a market analysis where he says the beginning of 2018 when the bear market started was when the market was more indecisive.
“The last time the market was more indecisive was at the start of 2018. Zones of minimal Long + Short positioning have historically coincided with bearish price action during bear markets (opposite is true for bull markets). When undecided, “the trend is your friend” prevails.”
“Interestingly in the Jan 2018 double top, peak indecisiveness did a phase shift. We went from “more bullish price action”, to “more bearish price action”… an early warning that the trend had reversed, the start of the bear market had begun.”
It means if the current trend remains unchanged, we can expect another “major dump” which according to Woo means we haven’t found the bottom but we are certainly getting a lot closer to it.
“Could also support the idea of an end of bear market/reversal if it doesn't play out. But mainly it's a trading signal. I'd want a bevy of long range fundamental indicators (on-chain based) to agree before calling a bottom. Not quite there yet, but getting a lot closer.”