Hi everyone, this past week has been a turmoil for bitcoin, or to say for the whole world. The tension between Ukraine and Russia has developed into an invasion and things are only escalating.
A similar case we saw with bitcoin was when it broke below 35k and then in just 14hrs, it broke above 38k. Since then it's been holding quite well. But there's one factor which isn't doing quite well and that is volume.
I'm not a trading expert or a chart reader but there are some common things that you can clearly see aren't matching. For the past few days, the volume in the market is not been quite well. The same thing continued with this recent breakout on 25th Feb. Volume spiked a bit as the price of bitcoin went up. After that, we saw some ups and downs in the price, not major ones but they were noticeable. The same pattern with the volume but unlike the price, volume fade away and went back to the previous range.
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This indicates that even though the price is holding well, the volume is not there in the market and this is not a healthy indicator. This makes me believe that there's a bearish pattern forming in the candles. In this current trend, 42k(the region between 40400 to 42k) is acting as a major resistance level and could be a key for a major breakout. But with these geopolitical conditions, it's not clear where the market will go. For the downtrend, 38400-38700 is acting as very temporary support. 36200 and 37400 are acting as strong current supports.
With all this, I would say that keep an eye on volume because it's been missing for quite some time and will play a major role in this geopolitical environment or this environment could itself be the reason for the absence of volume.
Closing Thoughts
As I said earlier, I'm not an expert or a chart reader, just sharing with you guys my opinion, yours could differ totally and it's perfectly fine. If you feel the same or are completely different, do share in the comments. I don't usually do this kind of article but sometimes it just feels right to share my thoughts. My goal here is to make you guys aware that the market right now is very tricky, so be careful with your trades and don't forget to DYOR before taking any action.
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