Another volatile week in the world of Bitcoin. Price fluctuated between $7,222.4 and $9,195.5. That represents nearly a $2,000 range, where price tested the resolve of both the bulls and the bears. While price has recovered from it's lows and currently trades around $8,900 range, this week's price action has left a lot of people confused. Let's unpack what happened in the week to see if we can make sense of the volatility.
1. Pre G20 Summit Meeting
As mentioned in our reflections last week the G20 summit meeting could act as a catalyst to be a pivot point for Bitcoin. At the start of the week before the event price tested the $7k lows and headed into the event with weakness. This clearly looked like the market was selling the rumor before the event and hoping for some positive news to buy the news. It was probably in Bitcoin's best interest to be weak during the summit and it appeared that helped it's case.
2. Post G20 Summit Meeting
There was not a lot of news which came...
by: Usman Sheikh
Moving higher for the 4th day in a row, BTCUSD finished Sunday at $11,486.83 edging higher $20.31 (0.18%) on low volume. Sunday's closing price of $11,486.83 marks the highest close since January 28th.
We are now looking to test the highs of February-2018 set at around $11,803. Our concerns are with regards to the divergence off volume. This may result in Bitcoin failing to break the $11,800s resistance level.
The start of the year 2018 has not been very kind to Bitcoin. With prices correcting nearly 70% from the high of $20,000 in December 2017, it has been quite the roller coaster ride. Traders with experience however are not surprised because Bitcoin tends to correct itself very similarly every January & February.
In January 2017 Bitcoin price correct from a peak of $1167.8 to $734.5
In January 2016 Bitcoin price correct from a peak of $475.4 to $352.6
In January 2015 Bitcoin price correct from a peak of $475.2 to $166.3
As you can see this is a trend that has been running for a couple of years and traders with experience trading this market were bracing themselves for another shakeout in 2018 as well.
The question on everyone's mind however is whether we have found a bottom for Bitcoin after this massive retracement.
All good traders know that picking tops and bottoms is a waste of energy. No one clearly know...
ProButterfly Investment Newsletter
Nearly registered for the best newsletter to help you get started on your investing journey. Join thousands of other subscribers today.