With Bitcoin and Ethereum trading in a narrow price range, the crypto market appears to be at a crossroads.
Investors are worried about whether the price will break up or down.
Recession of Bitcoin and Altcoins Makes Investors Think
The ongoing consolidation in BTC and ETH prices has sparked a debate over whether the market should be headed for optimism or concern.
Throughout the history of cryptocurrency markets, we have witnessed how prolonged periods of consolidation can polarize the crowd.
Bull and bear runs are notorious for catching investors off guard with their short-lived, dramatic moves. This time, however, the situation is different and many alternative assets are vying for the attention of investors.
Sentiment plays a crucial role when Bitcoin's price flattens out, and monitoring indicators like Santiment's metrics becomes crucial in predicting the next major market move.
📊 #Bitcoin has spent about 4 months now in the same $28k to $32k range. There are occasional swings to shake up #altcoins, but flat $BTC action eventually leads to irrational behavior. Read how the crowd's restlessness will dictate the next #bullmarket. https://t.co/0aGQcMEMUv pic.twitter.com/CtFiwzRfbb
— Santiment (@santimentfeed) July 25, 2023
Despite Bitcoin's recent drop to $29.2k, it remains limited within the long-running $28.0k to $31.8k price window.
This rather narrow range is surprising given that Bitcoin has been fluctuating within the 5% band for only two months during 2020-2022.
In the current scenario, professional traders take advantage of the volatility of altcoins against each other.
Currently, the number of bullish calls seems to outnumber bearish calls. Looking at historical charts, when BTC has been flat for this long, the result is usually bullish.
Although this situation points to positivity, it is necessary to be careful considering the effects on the global economy.
*Not investment advice.
