Tuesday begins with early selling pressure during Asian and European trading sessions. BTC slides down to $3,800 while ETH dips to $127.35. However, as the US day begins, we see a quick turnaround with BTC back to $3,870 and ETH up to $134.30. The phrase ‘directionless trading’ springs to mind. And without any earth shattering headlines the rest of the trading day saw the broad market struggle to find any great momentum or direction. ETH would slip back to $132 but both EOS and Stellar would register 3% gains on the day. Where from here? Hard to say.
My personal belief is that until BTC breaks this broader range, don’t go getting too excited (more about that below). On the news front, there were headlines indicating that the US SEC is preparing for a number of ‘meet-ups’ to allow for participants in the fintech and crypto industries an opportunity to voice their concerns and to seek clarity around the current regulatory environment. This should be viewed as a welcome step by the US regulator to engage directly with the community.
Days like today have those that write commentaries searching for some meaning, some sense to the bigger picture of the market. Intraday price action can often be inconclusive and without obvious catalyst and trying to explain it, pointless. So with that I am looking at a broader view of proceedings and to do that it’s best to focus on BTC. Below is an hourly chart for BTC which I have shown before, with a broad horizontal channel drawn stretching back to mid-December. While the breadth of the channel is wide (just shy of $1,000), it reflects the current state of play.
Market participants have become a little too accustomed to exponential moves and unprecedented volatility, neither of which are conducive to the growth of the market. While we continue to test either side of this channel, until we get a clear break, I think the broader market will remain rangebound also. Of course there will be exceptions, but maybe the market needs to get used to lower volatility and more realistic price targets
Tuesday’s biggest winner and loser.