Bitcoin Locked Near Critical Support Position, Upward Move Or Downtrend From Here?

Novogratz: Billionaire Upset at Bitcoin’s Downward Price Swing Wishing He Sold “a lot” more
Advertisement

The last 48 hours have seen the market go calm. The week has seen top coins largely trade sideways. Neither bears nor the bulls are taking charge of the situation which has seen market prices trade within recent ranges. Unfortunately, for most of these coins, they are trading near critical support positions.

For Bitcoin, the week began with a great prospect after hitting $10,500, however, the bears struck before dusk on Monday. Since then the asset has not been able to recover. Fortunately, the asset found strong support above $10K which has been a challenge in the last few weeks.

The asset then successfully bounced back above $10,100 which it has remained above. Prices have stalled above $10,150 with strong resistance keeping it from hitting $10,200.

Mixed Fundamentals For Bitcoin (BTC)

Fundamentals have always set the direction for Bitcoin. When fundamentals are strong, Bitcoin prices pick up and rally, when fundamentals are weak, prices fall. This time, Bitcoin is showing a mix of strong and weak fundamentals. Looking a the asset’s dominance, this is near 70%, which is a heavy force. This means the asset has enough support to rally and trade above higher support.

On the other hand, despite having high market dominance, daily trading volume has slumped. When the asset is bullish, daily trading volume is usually above $20 billion. After remaining above $15 billion for the last couple of days, this has fallen below $14 billion at the time of press. This is a sign of exhaustion from the market and is a fairly bearish signal.

Advertisement

Investor Sentiments

One of the most popular ways to understand investors sentiments is through the Crypto Fear and Greed Index (CFGI). With a scale of 1 to 100, with 1 signaling extreme fear and 100 extremely bullish, its position gives away what investors are expecting. When the number is low,  investors buy. One the other hand, high readings signal a sell as a correction could be on the way. 

Towards the end of last week, the index hit 5, a new low since December 2018. This has since improved to 30 (fear) but remains to be a low index that signals buy. Investors are still bullish on the asset and believe the asset is still going to climb higher.

As long as Bitcoin stays above the $10K support, many investors will remain bullish. However, if this support is breached, we could see a retest of recent lows and possibly a new bottom.


Disclaimer: The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of ZyCrypto. None of the information you read on ZyCrypto.com should be regarded as investment advice. Every investment and trading move involves risk, you should always conduct your own research before making any investment decision.

What's Your Thought On This?, Let Us Know In the Comment Section Below.

Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram