Many were ecstatic to see Bitcoin on fire in recent days. However, the BTC has once again been disappointing for the past few sessions, a disappointment that only neophytes and investors uncorrelated to market considerations share.
Market professionals, from traders to institutions, knew in part that the current bull market was only illusory, even though some exchanges tried to give dynamism to the cryptocurrency market.
BTC had remained in a range market for several years, crowned by low trading volumes and below the performance expected at this time. Quite logically, the prices of Bitcoin beyond the supports were just speculative, and did not reflect the value of the asset.
A Fake Bull Market 🙄
More than the low number of volumes, there was massive speculation by investors on the price of BTC with an analytical dichotomy: on the one hand many wanted to see a Bitcoin on the rise, on the other little believed.
Bitcoin’s advances were therefore irrational, and just boosted by group investors, wanting to see the cryptocurrency market explode again. Excluding the mass of individuals still does not believe in Bitcoin which is evolving in a Range market.
No signal indicates real bullish biases and the year 2022 could therefore be complex for cryptocurrencies. As when Bitcoin was attacking $10,000, the currency is patiently building its levels, a build that could last several months or even a year, with another explosion in the currency.
So many factors that led us to believe that the current bullish bias had to be quickly confirmed in which case Bitcoin would plunge below $40,000, which it did again yesterday.
Image source Kanchanara 🎯
