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Bitcoin (BTC) Yet To Test $6,000 Before A Likely Reversal
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Bitcoin (BTC) Yet To Test $6,000 Before A Likely Reversal

Bitcoin Chart With Values Bitcoin (BTC) price has continued to fall out of triangles since the big fall from $19,783 in January 2018. However, it is fair to mention that the triangles have become less steep over the time and the slope signals a pending reversal in the near future. Having said that, it is important to note that for a reversal to occur Bitcoin (BTC) has to complete the current cycle. That cycle will only be completed when the price falls to $6,000 level and successfully bounces back from there. Most technical as well as fundamental indicators point to a reversal at this stage. The price could drag on to mid $5,000s or slightly lower but in the grand scheme of things, that does not change much. For those that are holding on to their Bitcoin (BTC) or other coins all the way from $19,783, it does not make much difference if the price rebounds from $6,000 or $5,200. They are not going to panic sell because the price fell down to $5,200 and did not reverse from $6,000. This is because many of them believe in the long term potential of Bitcoin (BTC) and they know that the price is going to reverse sooner or later, which obviously they would not be able to time, so they do not mind holding on to their Bitcoin (BTC) after all they have been through. The unprofitability of mining at this stage as well as growing institutional interest at this point in time gives them further confidence that the future is bright. Bitcoin Chart With Values Bitcoin (BTC) volume is dwindling by the day because the number of buyers and sellers has decreased. What does that mean? It means that sellers who were comfortable selling, let’s say at $11,000 are no longer comfortable selling at current levels. As for buyers, those that were willing to buy at $11,000 are no longer comfortable buying at these levels because they are scared the price could go down further. This sounds pretty straightforward and it is as far as daily trading volume (on exchanges) is concerned. However, at times like these, a lot happens in the background that most of the time goes unnoticed. For instance, large institutional buyers who believe in the long term potential of Bitcoin (BTC) start buying OTC (over the counter) so as not to push the price of Bitcoin (BTC) by placing direct buy orders on exchanges.  In this case, the current price of Bitcoin (BTC) is not a true indicator of the real value of Bitcoin (BTC). Furthermore, the low daily volume means that fewer number of buy or sell orders is required to swing the price a particular way. When the price falls and the volume falls with it that is usually a strong indicator of a bullish reversal. No professional investor would want to short a market at that stage because the risk of a short squeeze is too high and the chances of large investors buying directly on the exchanges in case of a significant drop are very high. This results in an overall fading bearish sentiment and the price starts picking up and trading sideways until buy orders on exchanges push the price higher.

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