After a positive week during which Bitcoin managed to reach a solid 18%, the bears seem to come back stronger. The mood will become negative as hopes for a Christmas rally falter and analysts aim for $ 6,000 for the second time.
Bitcoin is consolidating – just for how long?
For the second day of this week, BTC held more than $ 7,000 and began forming a consolidation channel here. Until then, it only took a few days to make a big jump, so something is imminent.
At the end of trading yesterday, Tradingview.com dropped it to $ 7,150 but quickly recovered to $ 7,350 where the asset is currently trading. On the hourly chart, Bitcoin maintains support for the 200-hour average.
However, a deadly cross on this short span of time could make more casualties. Zooming out on the daily chart still shows a significant downtrend with support of just over $ 6,800.
Trader and analyst Josh Rager has done another mini-survey to gauge the general sentiment – and he is very bearish for the moment. 57% of the approximately 2,000 respondents expect BTC to drop to $ 6,500 before returning to $ 8,000.
The Bitcoin fear and greed index, which currently reaches an anxiety level of 28, is another indicator of market sentiment. The bearish mood is spreading like wildfire when the trend is down, but the overall situation speaks volumes.
Why so bearish?
The macro-economist & # 39; Riggs & # 39; commented on the bearish sentiment on crypto-twitter:
"I find it hilarious that all of Bitcoin's top Twitter quit and become bearish in the face of one of the 3 biggest investment buying opportunities in the history of investment." small signal flashes quickly and you just throw the sponge? Any noise. "
It is true that day traders dominate the crypto-social media and are simply looking for quick returns. There are probably as many, if not more, investors who accumulate and hold assets, making these short – term charts quite meaningless. Riggs remains optimistic about BTC:
"Mathematics guarantees an increase in value for the coming decades.This is not a random equity investment.It is the world's first digital, decentralized and digital asset.Nothing else in the world has a truly limited, secure and portable form of supply and value. "
It is also a valid statement, but it is often difficult to understand if the majority is still bearish and the sale continues.
There is a little already seen in the cryptography markets, as almost the same thing happened at the same time last year. A return to crypto winter may be inevitable for most Altcoins – but bitcoin is at nearly 90% since early December 2018. When it falls back to these levels, it may be time to worry. But until then, there is really no reason for all this bearish mood.
Proof of text: newsbtc