November’s volatility looked to have settled over the weekend as support began to shore up a price seemingly destined to become bitcoin’s new normality for a trouble-free December. By yesterday morning several analysts were suggesting the dawn of bitcoin’s long-awaited recovery was crowning on the horizon as it held above the 4k line, unaware dark clouds were already forming. That confidence extended into the afternoon before a gradual slip to $3,800. But, as the sun began to rise on this morning’s trading, things were still looking uncertain for any form of bullish support that remained.
However, despite the potentially gloomy outlook, BTC is still clinging to what is now being viewed as fairly robust backing above that $3,900 mark.
If this holds out throughout today, the chances are we could see a reverse of recent form as we witness the classic signs of what is known as an inverse head-and-shoulders pattern.
While some may still believe bitcoin continues to dance on a trapdoor, today and the rest of the week could provide the clues to what may yet become a full-bodied recovery.
If we see high buying volume nudging the price north of $4,200 then the smiles will return to the faces of brokers, traders and enthusiasts alike.
If the volume doesn’t show through, it could very easily stall and head into a freefall that many would be willing to pin an “I told you so” note on as it descends into an abyss.
The true picture isn’t quite in focus yet, but the effect will no doubt be felt across all the major cryptocurrencies as they catch the cold from bitcoin’s sneeze.
Volume is the absolute key this week.
It will be the deciding factor in determining whether the bear is ready to hibernate for the winter and allow the bull back into the game, or if it was just having a lie-in over the weekend and has woken up with a voracious appetite.
Perhaps most telling is the general feeling among investors that they long for the days when they could complain about how little was happening in a stagnant market which could barely raise an eyebrow, let alone a heart rate.
Remarkably, that was less than a month ago.
It would seem the recent bearish few weeks have delivered a little too much excitement for many, but this could yet prove to be bitcoin’s most interesting week of the year.
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