The crypto market is writing history. Never before has Bitcoin been as trendless as it is now. In fact, this trendless state is going on for close to 4 weeks now, but the last 10 days are truly flat on the BTC chart. Crypto is the most volatile market in history of mankind. Is this changing? Or is this a temporary phenomenon? Does this trendless market come with opportunity for investors?
As seen below, the BTC chart is flat for some 10 days now.
Let’s refresh our mind and look back at what we have been writing in recent weeks.
In last week’s article Will Bitcoin Move Back To 30k we pointed out that BTC can run to 29.9k, potentially, but it should do so not later than a specific date. The two dates we have are Tuesday Aug 9th and Friday Aug 19th.
We have the impression that Bitcoin might test 29.9k in the next few weeks. However, in our latest research we gave Bitcoin ultimatum, a very specific date by which it has to be moving higher. It might be that it will be testing 30k by then in which case it would turn 30k into resistance.
Moreover, two weeks ago, we noticed that the weekly chart of BTC has the potential to create a nice bullish reversal structure: Bitcoin: Why Next Week’s Price Action Will Matter So Much
The weekly BTCUSD chart is now for 6 full weeks in the lower 20ies. This week’s candle is shaping up as pretty important in the context of this recent structure. Why? Because you can clearly see the tendency of BTC to rise (you don’t need charts to notice this) but here is the key point: IF (that’s a big IF) Bitcoin succeeds in clear 23.7k, by next week Sunday’s closing, it will create a really bullish reversal structure, on the weekly chart.
The 23.7k area provided resistance in the last 2 weeks.
Interestingly, even though BTC was not able to break out, there was also no breakdown. Trendless means flat, also no volatility pushing the market lower.
Remember that we wrote about Ethereum’s absence of volatility about a month ago in Ethereum’s Volatility Is Disappearing, What Does This Suggest:
In the meantime, we see the ETHUSD chart flattening. IF (and that’s a big IF) the USD is setting a turning point it should support cryptocurrencies. That’s because both markets are inversely correlated. In that scenario we see a double or triple bottom type setup unfolding on the ETHUSD chart.
We got a turning point the USD, about a month ago. There was an almost instant reaction in ETH but not in BTC. Will BTC react with a delay? It might be, but it should happen not later than in the next 10 trading days, is what we see on the chart.
As a side note, there is one very interesting bullish reversal chart setup in the crypto space right now, we featured it in this week’s crypto alert to premium members.