The market sentiment surrounding Bitcoin appears to be neutral at the moment. Even though several analysts claim unusually high targets for BTC, it seems investors are not really buying into the idea.
At the same time, Ethereum, however, rose spectacularly. It is currently trading at around $240. BTCUSD traded at just over $9,550 at the time of publication.
Is the Bitcoin market apprehensive at the moment?
Bitcoin’s price movements have been vastly different from the consensus’ expectation. Before the BTC halving, exchanges saw a mad rush from the retail and institutional segments. However, after the halving, much of the interest from the retail investors have reduced.
Bitcoin’s recent Bullish momentum might have raised hopes for the novice enthusiast. However, long term investors are perfectly aware that there has been no real Bullish signal in Bitcoin recently. The rise was merely driven by the number of open interest in the options expiring on May 29.
Decreasing volume for BTCUSD raises concern
The fact that the BTC market is not currently Bullish can be figured out from the traded volumes. If we look at the four-hour BTCUSD timeframe, we can see that they are not close to the traded volumes marked in red.
Moreover, BTC is likely to face stiff resistance at $9,621. If BTC declines from there, we might see another round of quick selling.
Bitcoin’s price action can react harshly to even minor setbacks. It is because of the expectation of obtaining quick profits from BTC by a lot of people. And when they see losses, they quickly sell-off, pushing prices further down.
BTC, in the long term, is an entirely different story, however! And investors should have a long term perspective while investing in Bitcoin.
Check BTCUSD Chart on TradingView.