Bitcoin - Bearish Sentiment, Bullish Feelings

Over the last 3 days or so, we have witnessed a volatile Bitcoin price, which seems even more confusing. The price has ranged between $7300 to $8300. This has also added to the confusion as to whether we are in a bull or bear market. Pundits, as you can expect, are already discussing this even though many have no convincing story.

The charts, on the other hand, paint a different story. By now you all know I love the Ichimoku Cloud for my analysis (you’ve heard it adnauseum, apologies to all). Looking at the graph below shows that the price candles are solidly within the cloud. When price candles are within the cloud, traders neither buy nor sell. It is considered better to wait for the candles to come out of the cloud before buying or selling. Of course, as a trader, you will consider other factors such as if the asset is overbought or oversold. In addition, the Kijun sen is telling us not to trade by flattening out as can be seen on the graph. 

Bitcoin Price Movement (courtesy investing.com)

​Some pundits are saying that as long as the price of Bitcoin remains above $6000, we are still in a bull market. I have long stopped arguing and stuck to the charts. Bearish sentiment is all around us even the altcoins have taken massive drops, Nano, Waves, and Neo come to mind. Eventually, the candles will come out of the cloud in a certain direction, which will confirm the market sentiment. So, in which direction do you think sentiment will head, your guess is as good as mine.