Bitcoin being Bitcoin
The last 7 days of BTC have not brought something important. The price is bound in a range, which is supported at the level of 28 654 USD and with the resistance that is at 30 553 – 30 899 USD (on Binance). If we remain here, nothing important will probably happen. To put it simply, if we remain in this range, we long the support and short the resistance.
Read also: Are cryptocurrencies in bear market?
Obviously, sooner or later we will witness a movement that will get us out of this range. As of now, it remains to be seen when that happens and to which side we will move.
Bitcoin 4h chart, Source: Author’s analysis, tradingview.com
What surprised me yesterday?
Examining S&P 500 is more important than ever to understand the movements of Bitcoin, since it follows this index very closely. The movements are different in the magnitude, yet have the same in direction. For instance, if S&P 500 starts rising, Bitcoin tends to do the same.
Yesterday, the whole market looked bearish (possible short positions), but S&P 500 broke resistance and a potential long was in. Even though this happened, BTC was falling down, while S&P 500 was rising, which is portrayed in the chart below.
S&P 500 4h chart, Source: Author’s analysis, tradingview.com
This also shows that cryptocurrencies are currently very weak and do not have the power to move up. The buy orders are simply not there.
Conclusion – weekly candles and liquidity
The sentiment around cryptocurrencies is hardly positive. Bitcoin is in a record downtrend since it has closes 8 weekly red candles, which has never happened before. The liquidity is missing, Fear and Greed index is at incredible lows.
All these factors support the current price movements, which are stagnating and are a bit bearish. We can see 10 or even 20 weekly red candles, but that does not mean much. Until the buy orders do not start coming in, the situation will not change. Liquidity is key when it comes to this.