The cryptocurrency markets are staring into yet another weekend of potential volatility after failing to achieve the heights many enthusiasts had wished for this week. A hope-addled spike going into last weekend managed to briefly catch a thermal before gliding back down to previous levels as it levelled off from Monday to Friday between $3,730 and $3,840.
A clumsy drop to $3,718 straight off £3,795 on Wednesday night was the only occurrence to evoke even a shadow of the mass excitement of a weekend that had quite a few traders rinsing out their ice buckets and polishing the champagne flutes.
However, that drop was quickly met by enough resistance to nudge things back to the $3,800 line.
Going into the weekend, it would seem that bitcoin – and indeed it’s lesser-known cohorts such as Ethereum, Litecoin, XRP, Bitcoin Cash and so on – are building some momentum once again.
For anyone with bullish sentiments, the last five days have all been about falling back to the bannermen and regrouping as they prepare to make another assault up the markets this weekend.
The big question ahead of this next raid, of course, is do they have the numbers to affect a change? The simple answer is a fairly clear ‘no’.
Last weekend’s failure to trouble the $4,200 mark will have dented the enthusiasm of many traders, and while another effort to launch bitcoin and the like back up to something approaching the $6,500 levels of much of 2018 will be attempted, it is likely to fizzle out before it even gets within shouting distance.
A lift towards $4,000 could be anticipated this weekend, but the notion of gaining lands and territory north of that border seem wildly far-fetched.
Weekend volatility is becoming a regular fixture, and if last week is anything to go by, there’s a pattern evolving that is showing quite the opposite of what many with bullish sentiments are currently evangelising.
With less in the way of volume, the smart thinking would expect some upward movement across the board, quickly followed by a falling correction once it runs out of steam to see the final figure landing in a lower spot than it did last week.
Make no mistake, this is still a bear market, and is likely to be so for some time yet.
Until those psychological barriers of $4,000, $5,000 or even $6,000 are broken and sustained with a degree of aplomb, then the return to a bull market is some way off.
It’s likely the bulls won’t act until BTC falls to a level that looks attractive enough to bring out the serious buyers.
And this dithering about between $3,700 and $4,000 won’t even get them out of their barns.
Something has to give.
And it will.
At some point over the next few months, BTC should correct itself with an almighty fall before this market picks up again.
Could it happen this weekend? Unlikely, but the sensible money seems to be on bitcoin’s price being lower by Monday morning than it is right now.
Coin Rivet a website bringing news, information, analysis, opinion and insight from the fast-moving blockchain world.