The crypto market continues to trade sideways. The movement for a majority of coins has been downwards. Led by Bitcoin, most are recording a drop of less than 1%. This means they continue to trade within support ranges. For Bitcoin, this is around the $6,700-$6,800 region. For two of the top altcoins, Ethereum and XRP, they are within support of $155 and $0.18 respectively.
These supports are crucial and need to hold or as one analyst notes, this could turn ‘ugly.’
The signs are already clear, daily trading volume has long been an indicator of price movement and is signaling a downward move. In the last few days, the volume has been at its lower lows. This coupled with the sideways action has historically led to bears taking control and pushing prices down.
A popular analyst who goes by the name CryptoDog is one of many investors who hold an optimistic view in the short term but is wary that the signs for a bear trend are showing.
A look at the crypto Fear & Greed Index further shows that the crypto community continues to be bearish. The index is currently pointing at 18 which is extreme fear. This is an increase from yesterday’s 11 but a decrease from last week’s 21.
For most investors, this is a cautionary period where though they expect Bitcoin to continue upwards in the mid-term, the short term is looking bearish with key lower support needing to be confirmed. Consolidation continues at the current level but is expected to be on full-swing if Bitcoin drops below $6.5K, something many long term holders have been calling for this week.
An upside remains probable especially if there is a pump to $7K soon. Though this will come through a whale pump or major trigger, retail investors will flock once this resistance is broken with the target of the recent resistance of $7.2K and with an eye on the $7.8K higher high.
