“I am dreaming of a rich Christmas”, is the new “I am dreaming of a White Christmas”.
Hey Boomer, there are so many news in the crypto market, that a good retracement would be the least surprising pattern.
Greyscale heavily enters the market.
Paypal has entered the market since one month.
Visa is entering the market.
Different institutionals are entering the market (or they are into it since years) as you can see from this picture.
But what is the market telling us?
Well, we are in an over-extended phase and volumes are dropping since the active bull-run phase as you can see in the following picture (here the original embed https://www.tradingview.com/x/bPnbZVjn/)
Red square: consolidating volumes and rising price.
Blue square. ATH reached with volume peaks only in a couple of candles.
If you use the Spot Market on Binance, you must have noticed the difference in the 24h volume on the BTC/USDT market. During the ATH reach, it almost reached 3billion USDT in the 24h volume, while in the last days we are not exceeding 1billion USDT. The movements that we are seeing on the BTC/USD market are more similar to dead cat bounces than real market movements.
There are a couple of reasons that may lead us to two different scenarios.
1 - Bearish one: institutional are giving some fresh air to the market, that in financial terms that means new volumes on the books and new SL or TP to be inserted into the Book Order. In this scenario we can expect a strong drop, probably breaking the 16.200$ level, where the previous dump was fully absorbed.
2 – Ranging one: Order Books are consolidating, creating a potential temporary altcoin season, with huge volumes to be distributed.
The average of two cases is towards the bearish pattern.
Why I do not see a positive pattern? Well, you know, when too many people are screaming to the wolf in a financial market, a rabbit is more likely to appear than the wolf.
That is why I am considering to sell another part of my accumulation plan at this level, above 19.000$ and eventually buy more BTC on a retrace.
Here is a small video about why I chose cryptocurrency trading, among the high number of different available trading.
What are your thoughts about?
