Quick Update

What we are seeing is a contraction of volatility or daily range. In general, price expansion tends to follow periods of price contraction, like a cycle. This market like any other market alternates between periods of rest or consolidation and periods of movement. Volatility is actually more cyclical than price.

When bitcoin consolidates, buyers and sellers reach an equilibrium price level  and the trading range tends to narrow like it is happening these days; we need new information to enters the market to move it away from this equilibrium point and finding a new price area.

I think we need to wait January to see some decent fresh news capable to increase again volatility and move the price away from here, either up or down. Net Volume remains weak and there is a lack of strong buyers at the moment. For this week support is the recent $550 low, that is also the midpoint (50%) of the strong upswing from $382 to $720, resistance is around last top ($720).

I want to wish you guys a Merry Christmas and see you soon at the next update.