The battle of the $3,400 line has, frankly, resembled a resolute Rocky taking on the lifelong-trained fighting machine Ivan Drago. When Bitcoin stepped through the ropes at the start of this week, the bookmakers weren’t fancying its chances. Weighing in at a malnourished $3,500 it was looking out-of-shape with a string of defeats from earlier bouts. Any hopes of a return to the form of last year were looking flaky from the very first exchanges, and a drop to the canvas on Monday cost $100 as it struggled to stay above $3,400.
Round two on Tuesday saw more of the same punishment being dished out as the psychological barrier of the $3,400 line was breached, opening up cuts that probably left Bitcoin’s corner thinking about reaching for the towel.
Remarkably though, and in true Rocky Balboa fashion, Wednesday saw an astonishing fightback.
Just as the crowd thought it would be the final round – the one where Bitcoin’s lights are extinguished with a thump of capitulation – there was an almighty flurry of punches that brought the original crypto up to $3,440.
As we entered Thursday, a breathless BTC was muscled back down, fighting toe-to-toe to stay above $3,400 – albeit by just a couple of dollars at times.
But still, what a fight. Whether this goes the full 12 rounds or not, you can’t ignore the support that Bitcoin has in its corner.
The bears keep on pounding, but it still refuses to go down.
Even this morning, despite being held under at £3,380 for extended periods and hourly closes, there were still some solid punches left in the game.
Could the comeback be on? Can Bitcoin defy all the odds and bounce back up?
Well, just like Rocky, it’s possibly all just a fantasy.
As much as the dreamers among us love to root for the plucky underdog, the forces at work seemingly attempting to trigger a capitulation look too strong for this little fighter.
One area to look at for an indicator of how the final few rounds of this fight will go is in the trading volume.
If that is high, then you can possibly start breaking out the Bitcoin merchandise and get ready to give the champion an open top bus parade.
However, it simply is not.
There are many ways of indicating volume, and some would argue the numbers are indeed there.
But traditional, trusted and popular indicators would say it has gone missing.
Apathy in a stagnant market is manifesting itself in lower trading volumes which, if considered as historical evidence, would suggest the bears are taking home the purse on this one.
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