Bitcoin continues to surprise on the weekend. When all other traditional markets are asleep, it seems that crypto traders won’t go away. Just about an hour ago, at 8:00 am UTC, the price slipped by about 2% from almost 19 hours of trading above USD 10,300, with no plausible explanation visible.
Of course, we should note that those current levels were also an unexplained Friday spike, when valuation jumped at around 2:30 on London time from below USD 10,200 to well above USD 10,400.
Bullish buyers in the US on Friday afternoon perhaps? But why did they wait so long, or is Europe now taking its turn for slim 2% profits? Hard to say.
— coinOK (@coinok) August 24, 2019
Some analysts are now looking at the preceding day of volatility as a marker of positive signs since the price has not yet dropped below the key level of psychological five figures for 48 hours now. The resistance is currently at USD 10,400 but this is now set up for a break either above USD 10,500 or below USD 10,100.
At these thin volumes, however, it’s pointless to take away any strong signals for more than a week ahead of us.
If you are a trader and you’re feeling down, it’s important to really put things in perspective, like this trader reminded us four days ago:
I don't understand how some people still believe we're in a bear market.
In 2019 we have seen the price go from $3.2K to being stable around $10-11K. Thats more than a 200% increase!
— CryptosBatman ⚡ (@CryptosBatman) August 20, 2019
And if you’re looking for more recent validation of technical analysis, our own daily updates don’t look too gloomy either!
In terms of news that could be providing us with a clue to the weekend sentiment, we look at a take from Forbes yesterday, who continues to chant the oft-repeated mantra by bulls that Bitcoin is the new gold. And when they ask the question: “where is the evidence for this grandiose claim?”, they willingly give several answers, and they’re pretty convincing.
They first point to China, who expectedly, announced a retaliatory tariff on the US.
Well, today China announced tariffs on the U.S. in retaliation to American tariffs and like clockwork President Trump has tweeted that a “terrible retribution” will be served. This is, of course, almost an autopilot response now, and is only the latest addition to a saga that we should expect to last long into the next presidential election.
And speculators are loving this, Bitcoin traders even, because every exchange of words seem to have a small but predictable effect on price in the markets both traditional and crypto.
But the evidence that Bitcoin is the new gold is damning, according to Forbes, who explains:
“We can see gold getting a little lead on bitcoin (BTC) in London when the China retaliation news hits but look at BTC exploding a good 90 minutes ahead of the U.S. news, well before gold, both well before the equities markets get wind of it and react.”
Cause for celebration for Bitcoin bulls and hodlers alike? Perhaps. But if you’re still not convinced, then maybe you should pay heed to supreme Bitcoin bull and crypto influencer John McAfee, who is urging everyone to “get a grip” on Bitcoin price slumps.
John McAfee Wants You to 'GET A GRIP!' About Bitcoin Price Slump https://t.co/VD8FB7ELDO
— Growing Gem (@GemGrowing) August 24, 2019
Apparently, his hundreds of thousands (or millions?) of followers are now showing concern about the price of Bitcoin. And he’s telling to chill out”
“Bitcoin jitters? Just stop it! Short term fluctuations are meaningless. Bitcoin is still up almost 300% from 6 month’s ago. Everytime there’s a dip I have to calm people in replies, DMs, etc. GET A GRIP! You know in your heart Bitcoin cannot lose. Relax!
He of all people should know that people in the crypto space are incredibly fickle, and has been the description of Bitcoin price. The FOMO levels were so high in 2017 every crypto, token and digital asset could not help but go up and when prices started to dump just months after the all-time-high, there seemed to be no floor in sight, despite the technical and fundamental signs.
Proof, we believe, that sentiment is still the major and dominant force in such a young class of asset with a market that is yet to find consistent levels of maturity.
Of course, before you listen to McAfee, you should, first of all, realize he is a self-exiled US Presidential candidate. He has refused to pay his taxes so is on the run from the IRS and lately, has been more obsessed with oppression in the United States rather than his old trends of Bitcoin advocacy.
Feeling reassured yet?
Image Courtesy: Pixabay