Over the past week, the cryptocurrency market and bitcoin have consistently been volatile in the $300 billion regions, moving up and down within the range of $280 billion and $350 billion. The market has operated within this boundary throughout March.
The cryptocurrency market has struggled to demonstrate signs of strong short-term recovery. Analysts have stated the $11,000 region as an ideal position to initiate a strong short to mid-term rally. But, the market has failed to sustain its momentum throughout March, and it is likely that it will continue to remain volatile due to its low daily trading volume in the upcoming days.
An intriguing aspect of the performance of the cryptocurrency market over the past 10 days is that it has not fallen or risen from its previous levels. It has constantly moved up and down within the range of $280 billion to $350 billion.
Several alternative cryptocurrencies like Ontology and 0x have outperformed major cryptocurrencies on certain days, likely as a result of a short-term pump. But, throughout the past week, the entire market has moved up and down altogether, with major cryptocurrencies like bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, and Cardano following a similar pattern in both drops and upward movements.
Today, on March 28, bitcoin has shown strong sell volumes, as shown in the 15-minute candle chart below. The price of the cryptocurrency peaked at $8,200 but struggled to maintain that level and fell to $7,750, before rebounding to $7,850. Based on the current trend it is unlikely that it will make a move back to the $9,000 region unless a large spike in buy volume emerges across all major exchanges.
While the media has tried to justify the movement of the market with news such as Twitter imposing a ban on cryptocurrency ads, it is not logical to justify every price movement of the cryptocurrency market with news that often do not correlate with the market. The cryptocurrency market and hundreds of cryptocurrencies within it have moved up and down in a similar pattern altogether.
If it was news or a certain event that affected the cryptocurrency market, the market should have dropped or recovered after the event transpired. But, the drop nor the recovery correlated with the news such as social media platforms banning cryptocurrency ads.
The cryptocurrency market has lacked volume and momentum over the past few months. Some analysts state that the market is showing difficulty in recovering from a 72 percent correction, which has been the third-largest correction to date for bitcoin, the most dominant cryptocurrency in the global market.
It is important to acknowledge that as with any asset or market, after a major correction, the cryptocurrency market is likely to slump for many months before beginning its rally. The current volumes on major exchanges signify the small probability of the market to recover in the short-term. The market will likely remain extremely volatile in the next few weeks until a large buy volume spikes and the market starts to pick up.
Featured image from Shutterstock.
Last modified: March 4, 2021 5:06 PM