“Breakthrough is how to distinguish a leader and who followed.” - Steve Jobs
There was an unusual calm in the market when bitcoin reached a new yearly high of $31.84k last week, but it couldn’t follow through, and as momentum faded, selling pressure increased, and BTC dropped to low of $30ks. The Bollinger Bands are very narrow, with only a 4.2% value difference separating the upper and lower bands. A move is brewing.
Volatility is expected to appear on the scene, although, in the short term, we are in no man’s land; liquidity remains low, open interest is still flat and shorts are nowhere to be seen. There’s no command in the direction we are going, and only a significant catalyst can spice things up in this dull scenario we are in. Mid-term is still optimistic.
Momentum is fading after being in its maximum; BTC price trades at $30.1k. Momentum is fading away and we have tight Bollinger Bands; we will remain in consolidation phase for a while.
A breakdown of the $29.65k support level will invalidate the long setup. On the other hand, a bullish leg up $31.5k could reignite momentum and surge the price to $33k; should reignite momentum. We need longs to enter and to raise the demand in the spot market, otherwise momentum will continue to fading.
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