As a seasoned crypto investor with a decade-long journey through the rollercoaster of digital assets, I’ve learned to embrace volatility and remain patient during sideways price action such as this seventh month for Bitcoin. The market is indeed a device that transfers money from the impatient to the patient, and it seems we may need more patience than ever before.
As a crypto investor, I find myself pondering once again about the unpredictable nature of Bitcoin‘s price. Last week, it hit a local top at $66,500, but alas, the anticipated surge in buying power has yet to materialize. This lack of momentum suggests that the price trend might be weakening, leading me to wonder if this could signal another downturn, possibly pushing Bitcoin’s value down to lower levels.
Seventh month of sideways price action for $BTC
With Bitcoin moving sideways and down for its seventh consecutive month, it’s understandable that investors may experience uncertainty and apprehension, as this sentiment is shared by many who own the leading cryptocurrency.
However, this is the life of an investor, and as Warren Buffet famously once said:
“(the) market is a device for transferring money from the impatient to the patient.”
As a crypto investor, it seems like we might need to exercise patience a bit more, as it appears that Bitcoin could take some time to shatter its current price barriers and soar into uncharted territories above.
$BTC ascending channel still intact
Over the past 12 hours, the Bitcoin-to-US Dollar rate (BTC/USD) remains contained within an upward sloping channel. The upper boundary of this channel has been tested multiple times so far, and currently, the price is skimming along the lower trendline of the channel.
Typically, this pattern tends to drop, so it’s important for traders to consider the potential for a downturn. However, if Bitcoin (BTC) manages to rebound from the base of this channel, a new peak above $66,500 could be expected as the target.
Has the latest reversal hit bottom?
On a weekly basis, the market’s behavior seems to indicate a slight weakness, yet there are also signs of optimism. The current correction from the recent peak is ongoing, as demonstrated by Monday’s spike to $64,400, which has since dropped approximately $2,000.
Despite a recent dip that reached the 0.382 Fibonacci level last week, prices have since rebounded. If this week’s trends continue and the price stays above this level, it would be considered bullish, potentially leading to another rise in the coming days.
On the contrary, the Stochastic RSI located at the chart’s base continues to raise some doubts. The swift indicator line (depicted in blue) has started to decline. If it drops below the slow indicator line (red) by the end of the week, this could indicate a downward price trend momentum, which is significant given the weekly time frame. This might suggest a strong bearish signal.
Liquidity on the way – patience is a virtue
For those investors feeling the doubt and negativity over Bitcoin, especially those from retail, it should be borne in mind that no matter the current price action, a huge amount of liquidity will be entering the system over the next few months from central banks across the world. M2 money supply is increasing as a result, and the premier asset to benefit from all this liquidity is Bitcoin. Patience may well be a virtue.
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2024-10-08 12:15