Bitcoin has been undoubtedly in wild volatility for days and weeks, with recent sideways trading eventually leading to a large movement that caused the most painful scenario for traders.
Wildly volatile
This volatility occurs at the same time with extremely frightened investors among investors, this can be a reverse trade signal which means a change in the impending trend.
The recent sell-off, which has led many analysts and investors to believe that further losses are imminent, is, in the end, a strong recovery that took BTC to a high of nearly $ 7,800.
However, at the time of writing, Bitcoin has retraced a bit to $ 7200 and the failure to sustain the recovery raises questions about the long-term importance of this rally.
Popular Twitter analyst Hsaka explained that he believes the cryptocurrency market, and especially Bitcoin, will soon see strong upward volatility.
Stopped on 7800 swing shorts at 7300.
Reshorted 7680.
Think I’m done with swing trading for a while, seems like volatility is going to start ramping up again. pic.twitter.com/iyxDxLZPSi
— Hsaka (@HsakaTrades) December 4, 2019
One factor to keep in mind besides the impending volatility that analysts predict is that investors are currently showing extreme fear, which historically an element that has been opposed by investors.
Another popular analyst Mr. Anderson said about this in a recent tweet, that this low market sentiment may actually be a positive sign for Bitcoin.
$BTC Fear & Greed
The Directional bias is/has been down & this area has clear risk
However, Extreme Fear combined w/ Funding showing a week worth of Shorts willing to pay a premium to short is a setup conducive for disciplined CounterTrend trades
Inexperienced should stay out pic.twitter.com/625b9t6tnI
— Mr. Anderson (@TrueCrypto28) December 4, 2019
Bitcoin spend 2020 to accumulate
While most analysts are optimistic for most of 2019, hoping Bitcoin’s bull run has begun, one analyst remains cautious, waiting for Bitcoin’s rally to cool down and return to the buying zone.
That buying zone has been hacked, although analysts predict BTC will remain in that buying area for much of 2020, putting Bitcoin in full accumulation mode.
Analyst Dave the wave shared charts showing the current price level as an ideal buying zone. A number of charts calling for Bitcoin to trade in this level have been shared long before BTC peaked in late June and early July.
BTC longer term.
Predicting price next year in the buy zone, which sets up nicely for the next parabolic run going forward. Accumulation mode. pic.twitter.com/feO1Lk7kh1
— dave the wave (@davthewave) December 4, 2019
The Bitcoin price began a rapid new rally on December 4, which could be caused by a large Tether transfer to OKEx, per AZ Coin News. However, it fully regressed and successfully formed the Bart pattern. The quick and complete regression led many to predict market manipulation.
Another explanation for the movement is the creation of the Bart pattern. Trader James outlined that rapid decline, showing that the Bitcoin bulls do not even have a chance to enjoy the pumped price.
Ouch.
Did the permabulls even have a chance to brag about this pump before the Bart? pic.twitter.com/4oeoXoVtHb
— James (@coinzada) December 4, 2019
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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