The Narrative Of The Price Of Bitcoin

Bull market versus bear market

Most traders and investors like a narrative. Rather than look at a spreadsheet, they much prefer to read the output of a word processor. I prefer a spreadsheet but a narrative does have its place as a lens to study the market with.

With this in mind you can see a market as a battle between bulls and bears. It is certain that the market can go up, down or sideways but not right to left so you can study the chart, which is merely a record of price discovery and hope to see this conflict unfold.

The more perfect the market, the noisier the picture, but in a fast market or one in crisis the picture is much clearer.

It appears quite clear for bitcoin. Here is the battle field:

Obviously bitcoin has been in a bear market since December, but the state of play now is that the bulls and bears are squeezing the bear trend into an increasingly…