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Is The Bitcoin Rally Sustainable?

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George Gaston Pombal
@twoitguys
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2 min read

Short answer... no.

Although broke out to 3 months high over $50,000 last week, trading volume hasn’t picked up (chart Daily Volume below).

The seven-day average BTC trading volume is still around $5B, less than half of what the market saw the last time BTC was at $50K.

If trading volume continues to be flat and BTC prices push higher, steam could run out and the rally will collapse.

Strangely, as numbers show us that there's not much interest in BTC right now, the market sentiments tell us a different story. The F&G index is in Green mode for extreme greed, contrasting with July where the index was at 10 (yellow) solid Fear mode.

Here's a few sentiment arguments and probable catalyst collected by FXstreet:

BEARISH ARGUMENTS

  • Delta variant causing concerns, risk appetite disappears
  • FCA bans Binance
  • Quasi-government negative announcement to trigger a meltdown
  • China to attempt to ban cryptocurrencies
  • Cyber-attacks facilitated by cryptos increase regulatory threat
  • Bitcoin’s hefty energy use cited as being environmentally unfriendly
  • Elon Musk calls Dogecoin "a hustle"
  • Cryptocurrencies can be hard forked
  • Bitcoin no tax haven
  • There’s a good probability bitcoin could be outlawed
  • The rollout of CBDCs to be the end of the cryptocurrency boom
  • Chip shortage raises questions about Bitcoin's sustanaibility
  • Crypto is little more than a big fat opportunity to steal your money and your identity
  • Crypto is not real, money is legal tender
  • Yellen disses Bitcoin

BULLISH ARGUMENTS

  • Senate reaches a deal over crypto amendment, supporting to not kill the industry

  • Massive upgrade for Ethereum to be very bullish for cryptocurrency’s long-term outlook

  • Corporate America is getting closer to welcoming cryptos

  • Citigroup states that Bitcoin could become the ‘currency of choice’ in future international transaction

  • Mastercard to open up network to select cryptocurrencies

  • Governments and central banks poised to deliver more stimulus

  • Fed to affirm its lower for longer rate stance and Biden to pass additional stimulus

  • PayPal and Square’s Cash App provides underlying support for Bitcoin

  • The world’s largest investors place medium to longer-term bets

  • Biden to appoint a crypto advocate to lead financial transition

  • Cryptos to flourish as real yields make fresh record lows

  • USD cyclical downturn reinforces Bitcoin rally

  • US Banks have authority to provide cryptocurrency custodial services

Hard to tell, where this is goanna go, but you better fasten your seatbelt. What do you think? Will we reach a new ATH soon or are we going back to 16k$?

Thank you again for reading me. Good luck and good Profits. GGP

Not financial advice just my opinion! DYOR

Posted Using LeoFinance Beta