Fusion Market Analysis - March 10, 2023
Fusion Market Analysis
In this week's Market Analysis we will explore how the current events regarding the US banking system may not have influenced the cryptocurrency markets potentially as much as the current sentiment is being portrayed by news headlines.
We will utilize Cryptoquote Fusion to analyze and compare the data from current developments to data on previous significant events and see how markets react going forward.?
Yes, Bitcoin has dipped below the $20K level but remember the primary motivation behind the birth of Bitcoin was to have a decentralized, secure, and transparent system for transactions and challenge the existing centralized financial system dominated by banks.
Let's analyze where Bitcoin stands currently using BTCUSD on Binance…
Unusual Volume
Volume trends provide interesting insights into how significant an event is and the effects the event has on the market. Is the market nervous and selling or, although price is down, is relative volume stable?
Interpreting from the 30 Day VS 120 Day unusual volumes these high trading volumes indicate a high level of market participation which leads to higher price volatility which might mean more liquidity being injected into Bitcoin.
Volatility?
Historical volatility has not risen at a rate of change as it has during previous significant events. Is this signaling for less volatility or more to come?
The price of? Bitcoin from the 10-day volatility of 56.51 shows that its been fluctuating rapidly over the past 10 days, whereas the 120-day volatility of 43.94 suggests that the price has been relatively stable over a longer period.
领英推荐
While the short-term volatility is going up causing a bit of uncertainty to investors, adopting it as a long-term investment by trusting in the potential of Bitcoin’s long-term growth is necessary.
Event Impact
Here are the 10 biggest losses for Bitcoin from the past 6 months.
Bitcoin could recover some of its lost value in the following days as investors regain confidence and begin buying.
VWAP
Volume Weighted Average Price can be analyzed to determine if the price of an asset is overvalued or undervalued. Let's take a look:
VWAP calculates the average price of all Bitcoin trades that have occurred and weighted by the volume of each trade and provides an accurate picture of the average price paid for Bitcoin.
When Bitcoin is trading below the VWAP it could indicate that the cryptocurrency is undervalued which it currently is, comparing the $30,559.375 VWAP to the current price of $20,024.02.
Historical Price Distribution Analysis
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