Last week was marked by a weaker trend for crypto. Bitcoin lost about 5% and most Altcoins faced similar problems. Individual outliers did demonstrate positive performance, such as Tezos and Cosmos. Many investors are hoping for a Christmas miracle to reverse the downward trend of the crypto market but are they grasping at straws?
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Is the turnaround coming during the holidays?
If the price drops below the $7,000 mark, there is a risk that Bitcoin could continue to tumble below the typically strong $6,000 barrier. That would be an excellent entry-level for newcomers but would dismay many crypto investors.
While the stock markets are closed, the crypto markets are trading 24/7. Therefore, Bitcoin investors should at least keep an eye on the market during and between the holidays. Because of the above-mentioned trampoline effect occurs with a strong rebound at $6,000, there will also be very large price gains in the short term.
One might think that Bitcoin & Co are already saying settling in for the holidays. But volatility can return very quickly. This is also supported by some technical indicators. Thus, the Bollinger bands of most cryptocurrencies have almost completely contracted recently due to the decreasing volatility.
This creates a kind of tension that can be unloaded in a violent price movement. Analysts believe that price jumps of more than 20% are possible in a market situation like the one we’re witnessing at the moment. The holiday season with reduced attention and lower volumes is even more vulnerable to this phenomenon. However, this cannot give any indication of the direction in which the price swings. In the short term, bearish indicators continue…