I had been very optimistic during this bitcoin price decline we are experiencing at the moment. I also refuse to believe that we have entered a bear market yet. However, the price action of BTC keeps me in trouble by not taking the swing that I expected as a result of market and technical analysis. Attached is another piece of simple yet powerful analysis which supports the hypothesis that we should see an upwards momentum soon.
Let's try to interpret the shown points from one point of view, which I believe is the case here.
At Point A, when the price went down not many were interested to sell at lower prices and thus volume went down as well. Many of them wanted to sell at higher prices and waited till the right moment. Power of hodling worked and the price increased as a result.
At Point B, the price kept increasing but not many were interested in buying at higher prices, thus the volume declined. It led to Point C, where many wanted to sell at higher prices which crashed the price of BTC and triggered thousands of stop loss sell orders and liquidations dragging the price further down. These voluntary and involuntary trades contributed to the high volume bars and but soon volume diminished allowing the price to settle down in a trading range.
Now I believe we are coming to an end of this trading range and therefore at point D, we see a huge decline in volume which could be a similar situation like in Point A, where not many want to sell at this price any more. One may argue that the volume is low due to lack of buyers in the market similar to the Point B and I would counter argue that if that is the case, 32,000 - 33,000 price will not act as a strong zone of support.
Further, at Point B, the market sentiment was that the price was good, high and appreciated. Everyone was in a bullish sentiment but fear crawled it's way in due to the all time high price range. I would also argue that today's market sentiment is the total opposite and therefore the market should soon enter an upward momentum.
Moreover, we should not forget the role of big investors who are looking to buy crypto at bargain prices as discussed in many other posts of mine.
Not financial Advice, but analysis only.
More insight to the Crypto Market: https://kaalama.org/Kaalama-De....epDive-Crypto-Whale-
#btc #crypto #cryptocurrency #bitcoin