Markets are not used to having a linear development. This is one of the first things we learn, often at the cost of losing money, but it is a reality. You will not see straight ascending or descending lines in the prices
And herein lies the great difficulty. Undoubtedly, a deeper analysis could lead us to identify conducts and behaviors of the masses that are often irrational, but this is the context in which we have to work.
Although this seems obvious, it should be remembered so that we do not forget it when planning our strategies.
Bitcoin: new bottom and rebound
This is precisely what we have ended up seeing with Bitcoin. A bitcoin that seems to clearly draw a new floor area around the annual minimum marked as a result of the FTX case
Right now, it seems risky to say, but we see the market starting a new bullish momentum. And this, despite the situation, has an enormously positive reading: There continues to be appetite for the asset, although with little intensity up to now.
Ehtereum: again in neutral dynamics
Ethereum draws a trajectory similar to that of his older brother, and leaves us with a new break in the bearish guideline from the all-time high (ATH) of November 2021
Although it is true that the piercing is caused by the bullish momentum of ETH, which we can see in the indicators below, it is also true that the decline in the guideline is the main cause.
The fact is that we have ETH in a market neutral situation again, and also with a strong market pull, as seen in the comparative data of our intensity indicators.
Understanding the concept of intensity
When I speak of intensity it is to refer to a somewhat complex concept. It is not about analyzing the evolution of the market, or the increase or decrease in price, but the speed with which this happens
These indicators are very useful to try to detect if a current trend is strong enough to continue, is decreasing or increasing, although this may not have a direct relationship with the price going up or down, as we can see in the hourly chart.
The research and development work of a trader is very important. We will continue to work on these concepts to find strategies that can be applied to trading digital assets, and of course we will report back on progress.