Volume Analysis Indicates no Imminent Springing Potential
Lots of Support and Dermand analysts are betting on the 48K region to spring BTC back to bullishness, but they are missing the forest for the trees. Here, I present the volume profiles of the upside parts of the latest massive bull of this year. As we can see, apart from the last ditch of an effort in the past couple of weeks, all bulls were backed by strong volumes early on. This indicates massive trust in BTC as a storage of value, but it also leaves it vulnerable to pull backs without significant resistance. We are now well past the top bull of last March and the resistance now lies in the middle, which has to support level, 48K and 34K. For BTC to go up imminently, a strong sell of should act as a spring, bringing it to 34K and springing back in the short term. Looking at the recent volume levels, and due to the inherent trust in BTC, this is unlikely, even though it would be affected by the market downturn. What's more likely is a period of slow decay until it reaches around 38K somewhere in the coming 3 months, and then a build up during the flatness could push it higher.
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