Boring Bitcoin?
Boring Bitcoin is a term rarely used but might be more common in the future as Bitcoin sheds its volatility over time. That has been ever more evident over the last week of trading. Since Monday June, 12th we have seen prices remain in a very narrow trading range with most daily candlesticks being of small body size and can be characterized as a “doji” candle with both upper and lower wicks that are bigger than the body size itself.
Not only have the candles shed a docile glow on BTC futures the recent increase in volume coupled with a stagnant price also sheds a very consolatory light on the cryptocurrency’s futures markets.
A Heikin-Ashi or Japanese average chart shows us more clearly what has been happening in my opinion. Looking at a weekly Heikin-Ashi chart we see that for the last six weeks we have had lower candlestick bodies that last four weeks have been red or black candles, showing that they below the mid-point of the prior week. Five out of the last six weeks also show a lower high while all six weeks contained similar lows leading to this week’s still forming candle exhibited as a text book doji candlestick resting just above the 78% retracement at $9,220. What this tells me is we have been consolidating under bearish pressure for the last month however the bulls still are able to hold strong at $9,000, creating a descending top flat bottom.
Until we break out of this consolatory phase we see resistance at $9,500 and support at $9,000.