Bitcoin Showing Signs of a Bottoming Market
There is something going on in Bitcoin that you are not seeing from the U.S. equity markets. It's an action you tend to see when a market is bottoming...
Increased Volume
Looking at the bottom of the chart you can see the prior few months volume was lower than average and in turn so was volatility.
Now, we have seen an uptick in daily volume the past few weeks as we pushed to the next support level.
Volume usually comes in when something has hit a pivot point and buyers swoop in to bid it up or if the sellers are giving it one last push to liquidate.
Thus far it looks like we are getting liquidation, but the key is if we can maintain these levels. 2,975 on this chart is the absolute low of this support area with most of the action being more so in the 3200 area.
Dance Bitcoin, Dance!
Obviously there are no guarantees that price bottoms at this level, but I do like the price and volume action I am seeing right now.
On the flip side, if price fails here and pushes into the 2,000s then all bets are off and even 1,800 is in play.
Published by ScaredyCatGuide
on
All about the volume! Waiting for the capitulation event but have also considered the thought that volume that high may not come through as more large holders will just be out of the market…. Still uncertain but waiting to add to positions (even considering bitcoin).
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