Just a few weeks ago all the crypto traders were excited when bitcoin rose above $10,000 levels, but now they fear if the bullish phase of the coin is over and the crypto markets will fall back into the bearish phase, while it is necessary to gauge the sentiment of the markets it is useful Stick to this trend.
Bitcoin closed February's trading below $9,400, after a significant rally in January that took the first cryptocurrency's price from the $6,800 level to nearly $10,000.
This huge price jump in January seemed to be the start of a new trend XM Arabia In the bull market, but the devastating collapse in February, following the spread of panic over the outbreak of the Corona virus epidemic in many countries of the world, increased fears of the possibility of starting another bear market for crypto assets, however, according to volume data, both months are likely to be support before the real reversal.
After rallying nearly 60% in the first two months of the year, crypto investors were quite confident that a new bull market had begun, and the rally was just the beginning of the anticipated boom ahead of the next Bitcoin halving event that will take place in May.
Bitcoin is falling again
But during the last week of February, Bitcoin and other cryptocurrencies collapsed amid fears of more crashes, just as the stock market experienced its worst crash since the global financial crisis of 2008-2009, due to fears of the repercussions of the Corona virus. .
Bitcoin, which was trading at highs of more than $10,000, fell dramatically to reach $8,400 at its recent lows before attempting a rebound.
Bitcoin’s “bad” monthly close was the talk of the cryptocurrency community over the weekend, as it shifted from bullish territory to a very bearish one, compared to the same case in July 2019, although the two events are very similar but the trading volumes were different.
Current volume indicates consolidation and is not ready for a reversal. Volume is often more important than the price action itself, because without volume to support the movement any price movement is likely to be highly manipulated and unsustainable.