Investors Are Uncertain Over The Next Direction of The Market
The coin market which has seen a lot of movement in the past couple of months seems to have quieted a bit as Bitcoin stagnates around the $18000. This has raised questions about the possibility of the coin gaining enough momentum to reach up to $20,000 as it nearly did in 2017 during a similar bullish market.
Sentiments point to the possibility of an emerging bear market despite social signals indicating a strong buy inclination. Bitcoin lost 0.99% of its market cap overnight which may be nothing, considering that the asset is known to pull back during corrections pending new upwards movements.
As expected, the uncertainty around the coin has impacted strongly on the altcoin market as well, with the top coins shedding some of their gains in the past week. Ethereum presently lost 0.91% despite having had a fascinating run in the past weeks.
Aside from the second most capitalized coin, others such as Ripple (XRP) lost 2%. Bitcoin Cash, EOS and Tron are other altcoins that have reacted to the uncertainty in the price of Bitcoin with losses between 5 and 10% in the past week. Perhaps the hardest hit is Stellar (XLM) which has shed some 15% despite having gained 60% over a short period in the past week.
Moving averages at the Oscillator index may not be a true representative considering that it is pointing towards the sell sentiment. The social indicators are still inclined towards the buy region. What is obvious is that the next few days or weeks will be interesting since they will determine whether Bitcoin is poised upwards of downwards.