As the crypto rumbles along a gentle downward slope, pausing occasionally to rise and then predictably fall back along its descending path, it bears all the hallmarks of a currency building for an explosion.
Despite the minor excitement of a sudden rise over the weekend to $3,730 then flopping back to $3,500 before the Sunday dinner plates had been cleared, there has been little in it for investors. In fact, that seems to be the general sentiment among traders as people are obviously waiting for something to get their teeth into. At the minute, as has been the case for at least eight weeks, there is an oscillating sideways movement which is giving almost nothing to those who want to work with Bitcoin.
And, while the general direction is a gentle fall, it is creating a lethargic attitude of willingness to let it continue falling before anything interesting happens.
It is nothing new. Markets across the globe and spanning a great spectrum of commodities have reached points like this too.
Whether it is gold, Bitcoin, pork bellies or frozen concentrated orange juice, a passive boredom will at some point become the theme.
So here we are – steadily nudging towards the tipping point that will take Bitcoin to the next cycle of its ever-fluctuating worth.
The destiny of where that tipping point actually occurs is entirely at the fingertips of those who are ready to click ‘buy’ when they firmly believe the bottom has been reached.
Have we found that bottom already? Absolutely not – now is not the time to buy when there is clearly more profit to be made by seeing through a further plunge from Bitcoin.
Does the bottom lay somewhere below $3,000? Almost definitely.
In fact, there are plenty out there who believe it will and should go further.
$2,000, $1,800 or even $1,200 certainly don’t seem beyond the realms of possibility. And nor should they.
If Bitcoin is to be taken seriously as a genuine financial future it needs to rinse itself towards capitulation before it can rise, Phoenix-like, and be propelled to levels where traders and investors can create a less fragile and irritable currency to deal with safely.
The posturing fluctuations in the current bear market belie what is a huge lack of confidence in both short and long investors alike.
Any number of blips on Bitcoin’s flatline are doing nothing of value and there is little interest in the original crypto in its current state.
Historical evidence from any number of markets all suggest that Bitcoin is heading towards its capitulation point, but not its end.
Instead (again, history dictates), this should be a coiling where Bitcoin is reduced to its lowest point before the bulls take over, mass buying commences, and faith is once again restored.
Patience may be the appropriate virtue over the coming weeks.
Coin Rivet is a website bringing news, information, analysis, opinion and insight from the fast-moving blockchain world.