Bitcoin (BTC) practically does not move from the place and again it becomes a solid boredom. Which, logically, we don’t want. We want to follow the dynamic course, at least for part of the summer. The cucumber season does not automatically mean that the market will remain without dynamism at all times. It is precisely that the years are partly very dynamic for bitcoin in part.
Stock market psychology it is still the same anyway. More precisely, it is clear from the market that purchases are made in a very careful style. In a really non-aggressive way, so even the price does not go too high. According to the attached index, bitcoin has been in this state since the first half of May. This means that there has been a bad psychology on the market for almost two months.
Emotions want time. The last major downturn occurred about two weeks ago, so it takes some time for speculators to stop being so afraid. But when everyone sees that the price continues to fall and bitcoin consolidates its current position, they may soon join the market.
In short, we are still working with the fact that bitcoin is extremely oversold and current stock exchange psychology lacks any rationality. There is simply no reason why the exchange rate should not expand in the short / medium term. Bitcoin has fallen by about 75% since November. Without any more solid retracement.
Current situation at 1D BTC / USD
Bitcoin fell from a miniature growing wedge on the daily chart, which is a bear pattern. But as I keep saying, it is necessary to take these patterns with a grain of salt. In addition, there was a breakthrough, but it’s all without dynamics. Among other things, the pattern was really miniature.
Bitcoin currently has to overcome the local resistance diagonal first, and then the harder challenge is the $ 23,000 resistance band. If the bulls described succeed, there is a high probability that bitcoin will see prices close to USD 31,000 this year. However, if the market is not able to break through even the nearest resistance, there is a risk of another slide down.
Be sure to note one crucial thing. Although the BTC exchange rate has not moved anywhere, the daily volumes remain above standard. They are still noticeably higher than we have been used to so far. In other words, there is a lot of buying / selling around 19,000 USD. But it doesn’t move too much with the price. Is it accumulating? Does it distribute? Due to those candle formations, I am more inclined to accumulate short / medium positions.
In conclusion
If we start to fall again, it technically makes sense to test the local market minimum at $ 17,622. When buyers buy the market low again, it may become a much-needed signal that will change the mood in the market. But the sooner the course goes up, the naturally the better. Otherwise, we can look forward to prices in the range of 16,000 – 12,000 USD.
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ATTENTION: No data in the article is an investment board. The analysis does not try to predict future price developments. It serves exclusively as educational content on how to approach the market mentally. Before you invest, do your own research and analysis, always trading only at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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