Bitcoin price has been in a consolidation range for the best part of 2 months frustrating traders in both the bull and bear camps with all sides trying to take positions to maximize profits on the next potential move. Is Bitcoin reaching a major decision point and if so which way do traders think it will go?
The mood on CryptoTwitter leans towards the bearish side of the fence, an overwhelming amount of traders are posting charts and predictions for Bitcoin to nose dive at any point to anywhere between $7400 to $8500. Many are predicting that this would be a great area of interest for buyers and are planning their long entries in this region.
The trader who goes by the handle @UB on Twitter sees the Bitcoin Price moving to between $8700-$8600 as the price broke below $9650 and had been kept under on a closing basis confirming that level as a key resistance.
The mood on Crypto Youtube is varied but still leaning on the short to the medium-term bearish side. In particular well known former Wall Street and now Bitcoin Analyst, Tone Vays expressed:
“This whole move up didn’t feel organic, even for Bitcoin. I would be a strong buyer on the pullback but wouldn’t go fully in unless it came back to around $4000-5000, although I am not short right now if I did take a position it would be to the short side.”
Taking a more agnostic approach another famous Youtuber who is known for verifying his positions and actually makes a living out trading “magical internet money” (bitcoin), Eric Krown (ex-CBOE options market maker) offered up:
“There is no doubt that the current structure on the macro “high time frame” such as monthly is still bullish, however the high to medium time frames are looking bearish in posture for now and I wouldn’t be surprised if we came back to test the Weekly 21ema (exponential moving average). On the other hand, everyone is very bearish right now so on the short term we could very well pop up and test resistance just overhead. Shorter to medium-term oscillators seem to be pointing up gain. When everyone is watching or thinking the same thing I wouldn’t be surprised if Bitcoin ran it the other way (up)!”
Another novel approach to gauging the mood of the participants in the market besides looking at candlestick pattern is to look at the Fear and Greed index, long used in traditional markets with a similar iteration under names such as “sentiment indicator”, there now exists one for the crypto space.
At present, the gauge is sitting at 22 which indicates the sentiment of the market is generally bearish and in a state of extreme fear.
Bitcoin doesn’t stay at such a low number for very long in a bullish market, it can also lead to many people shorting and opening up the possibility of a short squeeze.
Whichever way the Bitcoin price breaks, up or down, it will likely lead to a large resulting move that may be the trend to follow over the coming weeks and months.
Many of the Bitcoin and Crypto “Hodlers” will likely see this as a perfect buying opportunity to dollar cost average in to “stack more sats”, unphased by any short to medium term pullbacks. Those in the community with this mindset see themselves as the holders of last resort, claiming that they would not sell their bitcoin nor capitulate no matter how low the Bitcoin price goes, they only buy more!
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