With Bitcoin halving now, the bull market is supposed to be ready to go.
But the volume profile of the recent recovery may have bearish implications that could indicate that Bitcoin will fall into an extended bear market again.
Bitcoin's halved rally volume profile may have bearish implications
Volume precedes price. It is a common phrase known in all traditional markets, but it may not be as familiar to Bitcoin traders.
The idea behind the idiom is that smart money often takes positions early, which is not always reflected in price movements. Instead, the volume of transactions can provide an early signal that something else is happening.
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Volume is also an important factor in determining whether the graph model is valid or not. Often, particular volume profiles correspond to specific graphic patterns.
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The volume of transactions confirms even when the outages are real. When formations break down at low volume, the movement is often a trap and the price moves in the opposite direction soon after.
And this volume appears due to an increase in purchases and sales which occurs when limit orders are filled and losses are captured simultaneously.
The volume profile at the last Bitcoin rally in half, from less than $ 3,800 to more than $ 10,000, has declined throughout.
Submitted without comment.$ BTC pic.twitter.com/EMihQE4oG5
– Junior Lancaster (bear until July 29, 2020) (@ Juni0rLancaster) May 12, 2020
Could Crypto See Another Three Years of Bear Market?
According to volume analysis of different markets, the fall in volume with the rise in prices is a bearish signal.
Even worse for the fate of Bitcoin, the volume profile and rising prices are more like price action just before Bitcoin's price collapsed in mid-2014.
It was long before the bottom trough of the bear market was reached.
The volume model indicates that Bitcoin is at risk of a new crisis and potentially of an even longer bear market.
The price of Bitcoin closed last month as a bullish gulp, and Bitcoin's halving is here. A bull market should therefore start.
But a renowned expert on chart models says that bearish trends often continue after such candles are formed in a bear market.
Also, putting the price of Bitcoin on thin ice is the fact that even the biggest proponents of cryptocurrencies expect a devastating drop now that the halving has passed, as ineffective miners are now capitulating that the cost of production has dropped. Doubled.
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If the miners capitulated, it could push Bitcoin even further and slow the chances of yet another longer bull run.
After the collapse of 2014 which coincides with the current volume profile, the price of Bitcoin has taken almost three years to reach its record level.
Experts already point out more than a hundred days before Bitcoin breaks more than $ 10,000. Could it really take another three years of a bear market before reviewing $ 20,000 BTC?