For the last month the price of Bitcoin ranges from 9300$ to 17,235$. If we look at the multiple DOJI bars around the 11,000$ area, we might conclude that we are in price discovery mode. I think at the moment the whole crypto markets is assessing valuations and is trying to determine "what is next". Of course the whole FUD is making indecision even greter and lots of people are on the sidelines, waiting for something decisive to happen.

What is price discovery

According to InvestingAnswers

Price discovery refers to the act of determining the proper price of a CRYPTOCURRENCY, security, commodity, or good or service by studying market supply and demand and other factors associated with transactions.

Bitcoin

To be honest, my indicators are telling me that Bitcoin is heading for another bearish scenario. The 8-Day Exponential Moving Average is catching up with price action and the last three days it rejects the bulls ( The Red line is the 8-day EMA). This is the first signal I read as a bearish one. Another thing that is disturbing is that Bitcoin is trading on very thin volume. In order to reverse the short-term downtrend, significant volume is needed.

It's been two days since the beginning of the World Economic Forum and to be honest nothing "market-moving" has been said. This comes as a surprise to me, WEF panelists did not mention cryptocurrencies and blockchain, when a topic "Strategic Outlook for the Digital Economy" was discussed. Are they ducking it for a reason ? Very interesting approach in my opinion. However tomorrow is the last day of the meeting, so maybe something interesting might happen.

Back to BTC chart, the 11,000$ support is becoming a key support. I will not be too surprised if a false breakout (like the last one) occurs. I am mostly in cash position ( with my trading capital) waiting for a opportunity to show up. I will make sure to share it when it comes.

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