Bitcoin Mired In A "Chaos Zone"

By Candy Matheson of Strawberry Blonde's Market Summary

Blogger & Retired Russell 2000 E-mini Futures Day Trader • Mar 3, 2022 at 3:15 PM EST

Bitcoin is stuck in between the 50- and 200-MAs, or what I like to call a trendless "Chaos Zone," roughly in between the 40,000 and 49,000 levels. Until it breaks and holds above or below this zone, look for more volatile spikes and plunges to occur.

Following the formation of a bearish moving average Death Cross on Bitcoin in early January, it plunged briefly below a major support level of 35,000, as shown on the following daily chart (I wrote about the crossover previously on Jan. 23).

It then bounced back above the 50-MA, retested the 45,000 level, plunged again to retest the 35,000 level, before returning to retest 45,000 once again. It's basically stuck in between the 50- and 200-MAs, or what I like to call a trendless "Chaos Zone," roughly in between the 40,000 and 49,000 levels.

Until it breaks and holds above or below this zone, look for more volatile, random, and trendless spikes and plunges to occur in this cryptocurrency - this may be one to avoid if you're risk-averse on the daily timeframe.

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