Is the market "rhyming"?

By toofasteddie | The cryptorunner | 7 Dec 2023


We are all super happy about the magnificent push of BITCOIN these days. Although, let me tell you that I still have my reservations regarding the causes.
Exchanges are short on BITCOIN, which is very common at the beginning of a BULL SEASON... with less BITCOIN on exchanges and an increase in demand, the price rises... and that is what we are experiencing.

However, many people have realized that the volume traded does not justify the increase in price too much... in fact, if you look at the weekly BITCOIN chart below, you will notice this, that is, low volume compared to other beginnings of the BULL market, and an RSI very close to the OVERBOUGHT area...

image.png

The latter is much rare... typically, if the weekly RSI chart denotes an OVERBOUGHT condition, this usually precedes a trend change or correction...
It seems that we are reaching this state in this cycle much sooner than expected.

In my opinion, we should not worry at all, but we do have to recognize that the situation is not "rhyming" as it used to...

Another important thing is the hashrate and the difficulty of BITCOIN has not stopped increasing since the previous cycle...

image.png

We are breaking ATH after ATH...this is curious, we could attribute it to the "ordinals" fever in BITCOIN, which, in my opinion, is not so fashionable lately, although what I believe is that the BITCOIN network is being used more, not only to put JPEGS inside but also to transact and buy more BITCOIN between peers or between individuals outside the exchanges.

If this is so, if the largest amount of BITCOIN transacted these days is between individuals or OTC ("Over-The-Counter"), it would be logical to think that the price on the exchanges has not yet reflected the explosiveness that awaits us and which is to come.

As a precautionary measure, it is not a bad idea to keep an eye on the BITCOIN Balance on the exchanges from time to time...

image.png

...as long as it is decreasing, perfect, the moment the trend changes, then we will have to be careful.

@toofasteddie

How do you rate this article?

23


toofasteddie
toofasteddie

Dad, Engineer, Runner and Crypto-trader


The cryptorunner
The cryptorunner

Opinion and Trading Ideas about crypto

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.