Bitcoin aimlessly between $18K and $19K – analysts do not know what to make of it

  • Bitcoin has experienced extreme intraday volatility in the last few days.
  • In the past two days the coin has been traded at both $17,500 and $18,800.
  • Analysts now do not know exactly what to make of this price action.
  • The prominent Bitcoin trader „Jack“ writes that he thinks this market is „wild“.

Bitcoin’s confusing price action

Bitcoin has experienced extreme intraday volatility in the last few days. In the past 48 hours, the leading crypto currency has been traded at both USD 17,500 and USD 18,800 as the market has been fluctuating between major price levels.

Currently, the price of the leading crypto currency is $18,500, although it has visited both $18,400 and $18,700 in the last hour. This extreme volatility stems from the fact that the US dollar is beginning to move down again – which has boosted Bitcoin, gold and other harder assets.

However, analysts do not really know exactly what to make of this price action.

The prominent Bitcoin trader „Jack“ recently wrote that he thinks this market is „wild“.

Previously, he said that he was temporarily shorting BTC – at least to some extent. He may not be completely short, but he could be hedging in case the crypto currency falls in the coming days.

The trader has split the chart below, after which Bitcoin is currently breaking below the parabolic supports that brought the rally to the top. Parabolic supports that break in an uptrend are a sign that the rally is in the middle of exhaustion.

Bulls in control in the long term

Many say that Bitcoin bulls are in control in the long run. Tom Fitzpatrick, for example, senior analyst at Citibank: „He believes that the fundamental arguments for the leading crypto-currency are still strong:

„Bitcoin moves easily across borders and ownership is opaque. I think this last point is very relevant. The enormous deterioration in the budgetary situation today will have costs in the future, either directly or indirectly. Directly, it is that at some point the ‚bills have to be paid‘, which means that […] the money has to be found.

Dan Tapiero, a prominent macro investor, comments on Bitcoin’s prospects:

„For the first time I can remember that #Bitcoin was included in the list of macro assets by the BoAML blue chip fund mgr survey. I cannot imagine that #btc does not outperform all other assets. The fastest horse! It is so early for btc that it is only being included NOW and that is AFTER 11 years +250% annualised performance“.

However, analysts are optimistic that Bitcoin will continue to rise in the longer term, whether or not there is a correction.