Bitcoin touches the 'high-voltage line' for the third time, is it quiet this time at #BTC ? Beware or opportunity!
The previous two times encountering this line were quite lively, with trading volumes particularly high. It felt like buyers and sellers were fighting fiercely at that point, each trying to push the price in their direction.
But this time, the situation has changed! This time when it hit that line, the trading volume was noticeably much lower, and the market suddenly became a bit quiet.
So I pondered:
Is it that not many people want to buy? In other words, are there fewer people who feel this position is cheap and want to bottom fish? Perhaps they are scared, watching from the sidelines, or think it might drop even lower? So the buying momentum is weak. Or are there not many people wanting to sell? This means that at this point of decline, there are also fewer people who originally wanted to cut losses and sell at this price? Maybe they feel a bit like 'a dead pig is not afraid of boiling water,' or think that selling now would incur too much loss, so they simply won't sell? Hence, the selling momentum has also fizzled out.
Personally, I feel that this kind of situation with reduced volume touching the line is more worth being cautious about, but it may also hide changes.
To say it's dangerous is because if really not many people are willing to buy, it indicates that market confidence is truly weak, and after such reduced volume declines, it often continues to drop. To say there may be changes is because if really not many people are willing to sell at this price level, it suggests that the power to crash the market may temporarily be insufficient. I think if there is slightly more buying pressure in this situation, it might just hold up, or even bounce a bit. It could well be a precursor to the decline stalling?
But! This kind of quiet may also just be a temporary illusion, with a big move brewing behind the scenes, possibly suddenly leading to larger trading volumes, regardless of whether it breaks upwards or downwards. Right now, this reduced volume makes it hard to predict the direction.
Do you want to give it a push? Or kick it off the cliff?
For the brothers stuck in losses, report your break-even price! Follow me! Jin Zhu will open an escape route for you!
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