“Bitcoin moved slightly over the weekend and has started to stabilize in a range between $33k and $40K as the light trading volume continues in the market along with a persistent fear of Fed’s rate hikes. The light trading volume is predicted to continue in the Asian market as Lunar New Year approaches on Feb 1, 2022.”
The price of Bitcoin moved slightly over the weekend but has been generally range bound between $33K and $40K. The Bitcoin has started to stabilize between this range patterns as there is persistent fear in the market as well as the trading volume has been extremely low. At the time of writing, Bitcoin is exchanging hands at $37,014 down 3% in the last 24 hours.
The light trading is the result of holidays in the major exchanges in China, Hong Kong, South Korea and Singapore for the lunar New Year week long celebration. The people in Asian countries take time off trading during the festival for family reunions and thus until the traders return, the low volume in trades is expected to continue. Bitcoin remains in the oversold zone and is trying to breach the $38,400 resistance but keeps getting rejected.
Though RSI has risen a bit after Jan 22 that could attract short term buyers, but in general the fear and greed index depicts the market sentiment to be in “extreme fear” zone with a value of 20 on the indicator. The extreme fear zone encourages seasoned investors in buying at the discounted prices.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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