Things have been relatively quiet on the Bitcoin market of late. After the massive rallies and significant falls that catapulted the cryptocurrency into the world’s headlines in late 2017 and early 2018, things have definitely calmed down. In recent weeks, Bitcoin has stuck around the same level. Is this pattern a sign that the market is losing interest in Bitcoin as an investment or could it mean that investors are preparing themselves for big moves? In this article, we’ll look at the evidence and predict what’s next for Bitcoin.
Is now the moment to step back?
It’s certainly possible to become lost in the daily tick-tock of market reports. It’s important to remember that the vast majority of daily activity on the Bitcoin market is just random noise and doesn’t say anything significant about the long-term prospects of the cryptocurrency. There’s no point in spending hours every day going over short-term charts. They won’t tell you anything and the number of conflicting signals may well point you in the wrong direction anyway. Instead, take a look at a longer-term chart and try to spot patterns from a number of months ago. Ask yourself what happened the last time Bitcoin was in this sort of position.
For Bitcoin, things start to look interesting when you take a time cluster based view of its performance. This shows that there are definite patterns in its movements. Lulls like this tend to come before upwards movements for the currency, almost all significant drops in the trading history of Bitcoin have come immediately after sharp rises in its price. This would suggest that quiet times like this may be a good moment to move investments into Bitcoin, so long as you’re ready to make a very sharp exit at the moment things start to look negative.
Source: https://www.youtube.com/watch?v=d3ur59Uk7RI – Great Video By Alessio Rastani
Featured Image Source: Pixabay