Senior Trader: “The Market Is In An Identity Crisis, Trying To Find A Place To Stabilize”

Senior Trader: “The Market Is In An Identity Crisis, Trying To Find A Place To Stabilize”

It’s only Wednesday but it’s been a strange week for Bitcoin. The price has been all over the place as far as we can tell with is currently sat around the $7,830 range following a 1.8 percent change over the past 24 hours.

According to Bloomberg, the GTI Vera Convergence-Divergence indicator has flashed ‘sell’ for the first time since April. The indicator measures both positive and negative trends and has been showing positive signals for most of the year so far. A senior trader at Greenwich, Jake Stolarski told the outlet:

“The market is in an identity crisis, trying to find a place to stabilize. The key technical levels have been creating market volatility, for sure, due to sudden shifts in sentiment.”

He then went on to say:

“People are seeing where the resistance is, where the stops are both up and down. People are trying to find a stabilizing point where they can layer into a core position.”

Bloomberg’s Galaxy Crypto Index dropped around ten percent as altcoins sunk back into the shadow of their ‘big brother’. The move sparked the first real correction of the year as cryptocurrencies have been on the rise since February.

As reported by Bitconist:

“A number or twitter based traders and analysts have also called for further losses as the pullback is expected to accelerate. The formation of a descending triangle and the posting of lower highs and lower lows is definitely a sign of weakening in the short term.

The longer-term picture is still pretty healthy, though. In May alone Bitcoin made 62 percent in its largest rally since late 2017. A 12 percent pullback from that now seems pretty insignificant. The expectations of a 30 percent correction are also mounting and from its recent high of just over $9k, this would drop BTC back to the $6,300 level.”

Don’t forget about the all-important FOMO though. If the accumulation of mass retail starts, we could see a bigger volume of FOMO that the recent rally and push the asset to five figures pretty quickly.

On the upside, the long-term trend indicators are still looking pretty bullish so don’t start panicking just yet.

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