A unique yesterday’s day showed us for the first time in a long period of decline the absence of large orders for the purchase of bitcoin. Today, the charts also demonstrate the absence of such orders on the leading crypto-exchanges. As you might expect, the market “exhaled” and on the weaker orders created a rebound. Did the big players finish buying? In which direction will the bitcoin move further? Let’s try to understand these issues!
Unique for the last downward impulse, the lack of large volumes allowed smaller participants to move the price upwards. As a rule, this starts premature euphoria, because “smart money” simply does not take any action on the market and, probably (attention!) Prepares the ground for the next accumulation of positions. This is also evidenced by small trading volumes over the past 24 hours.
If we consider the last upward impulse (timeframe 2h), then for a probable rebound it is very suitable. Having formed the fixation at the 38th level of the last descending impulse, bitcoin entered the stage of the “failed span” and prepared for the continuation of growth. But personally, I would not recommend talking about continuing growth until the range of $ 8,990- $ 9,396 has been overcome, and larger volumes of trade without the participation of “super-large orders” will not appear.
The fundamental picture
As I said in my previous article, the absence of “super-large orders” will be accompanied by positive news, so that the largest part of market participants believe in a groped bottom. The news was actually provided, but the main thing is that at the hearings in the US Senate this Tuesday the head of the Securities and Exchange Commission (SEC) Jay Clayton and the head of the Commodity Futures Trading Commission (CFTC) Christopher Giancarlo told about the plans government to regulate the sphere of crypto-currency. Both of them were surprisingly speaking in an optimistic tone, amid a string of negative news and disheartening market dynamics.
All of us now understand that it is now possible to file crypto currency before the regulation. But it’s good or bad, it will take a long time to sort it out. The saddest thing is that the news appeared on time. This also worries my inner optimist, who requires confirmation of a rebound in the market.
Conclusion and personal opinion
Yes, there are signs of a possible rebound from the “bottom”. However, I would not be in a hurry to rejoice until at least a few day candles on the bitcoin schedule show good consolidation in the market. Many will consider me a conservative in this matter, but still I believe that the beginning of active growth to new heights ($ 25,000- $ 30,000) is possible only after a breakdown of $ 10,817- $ 11,474.
A real recommendation I would call accurate purchases of bitcoin and a more competent distribution of funds among the altcoyins. Whatever decision you made, remember:
It is better to lose less than lose. All the best to you, and the passing trend!