Bitcoin has been lulling around the same levels for the best part of three months, forcing crypto markets to maintain stability.
The odd rally followed by an equal sized dump signals major indecision which when seen before usual indicates that the trend will continue.
Similar Bitcoin Indecision in 2018
Crypto analyst Willy Woo has taken a look back to early 2018 when similar zones of long and short positioning had coincided with longer term trend continuation.
The last time the market was more indecisive was at the start of 2018. Zones of minimal Long + Short positioning have historically coincided with bearish price action during bear markets (opposite is true for bull markets). When undecided, “the trend is your friend” prevails. pic.twitter.com/xwAkXrqKI3
— Willy Woo (@woonomic) March 3, 2019
When the speculation level falls a dump has followed as can be seen four previous times on the yearly chart. If this pattern continues another market dump is imminent as neither bulls nor bears have had the upper hand for the past week or so.
The opposite is true in bull markets were short spells of indecisiveness also result in trend continuation. A double top at the end of 2017 and in early 2018 signaled a phase shift and trend reversal. This would also apply to the bottom so would be something to look for in order to spot the start of the next bull run.
More Pain Ahead Says Murad
Murad Mahmudov , who has correctly predicted price action several times in the past, also foresees more pain ahead. Comparing charts from 2015 to 2019 the patterns are uncannily similar.
Crypto Twitter right now: pic.twitter.com/8myzpRempV
— Murad Mahmudov
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