To say that the crypto world is simply volatile is a huge understatement. After melting all the way down to $9,500, Bitcoin caught a strong bid, presumably due to a simultaneous combination of short covering and panic buying.
It's another day, and another extremely volatile session in the world of Bitcoin. After melting down to $9,500, Bitcoin caught a strong bid and has added $40 billion to its market cap.
And it's not just Bitcoin. Many digital assets that were down by 30% or 40% yesterday are up 30%, 50%, or 70% today.
Did Bitcoin suddenly become faster, more efficient, and cheaper to use? Did the regulators in South Korea suddenly decided to give their citizens the present of the “Happy Bitcoin Dream”?
Bitcoin is difficult to value. All we have are supply and sentiment, which drives demand and in turn enables price discovery. But what happens when sentiment is neutral?
It appears that technicals are taking over, so let's see what the charts have to say. Well, maybe the sky isn't falling after all, but Bitcoin still can.
This idea was discussed in more depth with members of my private investing community, Albright Investment Group .