As volatility appeared to return to the market on December 4, Bitcoin bulls attempted to regain $17,000. After the slaughter in the first week of November, BTC returned to $15,476 before gaining some momentum in the past few weeks. Bitcoin searched for catalysts as volatility signals crept into low timeframes while macro cues were yet to come.
(7).png?w=640&auto=format%2Ccompress)
<source: tradingview>
Overall, positive economic conditions characterize bull markets. They indicate that a market is rising and are frequently accompanied by optimistic investor attitudes toward the uptrend that is currently in effect. In a bull market, there is a steady rise in asset prices along with a robust economy and high employment rates.
It is investors who start a bull market. They begin buying assets (at a low price) when they believe that prices will start to climb and stay that way for a while, and they are confident in their investment's potential return (ROI).
A crypto bull run is a protracted period when many investors buy crypto assets. The aforementioned traits define rising prices, an imbalance between supply and demand, and high market confidence. A positive feedback loop usually results from investor confidence, extending the bull run. Particularly in the case of crypto and crypto assets, public confidence in an asset significantly impacts and drives the price of a given crypto and crypto asset.
The bull market has a high need for crypto and crypto assets, and a low supply. While many investors are interested in buying crypto and crypto assets, the ones who hold them are not prepared to part with them. Prices rise even more as investors compete to buy what is on the market. When the price increases significantly, the market enters a bull phase, and when it decreases, it enters a bear market. During bull runs, the trading of stocks and crypto assets also rises.
Now, about Bitcoin in particular.
Popular trader Cheds, who observed that the Bollinger Bands volatility indicator was flashing on the 4-hour chart, was one of many watching for a potential breach in the status quo.
The 4-hour chart's bands were at their narrowest on the day since November 27, just before BTC/USD gained $1,000. Bollinger Bands constricting indicates that volatility is due soon.
Crypto Trader Tony, meanwhile, stuck to his view about the short-term price of BTC. He tweeted to his followers, "Simply no change over the last few days."
Meanwhile, the performance of risk assets and the U.S. dollar appeared to be increasingly dependent on the upcoming week. The U.S. dollar index (DXY), already at its lowest levels in five months, appeared extremely gloomy after the previous trading week. On December 2, a spike to 105.6 reversed almost entirely throughout the day, with DXY ending the day at 104.5.
According to technical expert Gert van Lagen, it was part of the plan as bearish DXY indications were already there in November. In an analysis published on November 23 that he revisited over the weekend, he stated, "Swift bearish continuation would be normal here." Regarding DXY’s performance, trading resource Stockmoney Lizards added, "Correction ongoing."
We have launched Cryptogram, an India-focused free weekly newsletter on blockchain tech, global crypto markets, and Web 3.0 technologies which promise to change our future. If you would like to subscribe to this newsletter, click here. You can read our past editions here. Also, check out our website here.
Use promocode TNM51 at www.giottus.com/profile#promo after registration to get Rs.51 worth free Bitcoin.
Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.