A catchy title, you say? Sorry, I had to compete with the SEC’s threat… In this new analysis on Coinpri, we’ll try to see what’s going on for altcoins apart from Ethereum.
Warning This article does not constitute investment advice or an invitation to invest. It is intended for information purposes only. strictly informative. You are the only one responsible for your trading and investment decisions.
What happened, why did it fall?
A new rise was to be expected, as I told you in my last analysis… In any case, quite a few indicators were pointing to the end of the downtrend. But the SEC decided otherwise, directly attacking certain corners such as MATIC and ADA, causing them to fall.
How to see it? There are a number of ways, the first of which is: take a look at the dominance of Bitcoin. This represents Bitcoin’s strength relative to all other cryptos.
The good news is that it’s breaking through a zone of resistance. Which is bullish for Bitcoin relative to altcoins.
Warning: this doesn’t mean that the price of BTC will rise, but simply that Bitcoin will rise the most on the way up and fall the least on the way down.
Speaking of falling, we can see the price of Bitcoin now moving below this white trendline. It has, alas, broken to the downside, with a target of around $23,000. The real question is, will we go that far?
The remontada or the street?
This week promises to be a volatile one for all markets. Especially at the start, with two VERY eagerly awaited figures from the US: :
- Inflation figures (Tuesday)
- Rates (Wednesday)
This follows on from the reopening of the debt floodgates, which was voted through a short while ago and allowed the US to raise its debt level by a few hundred billion dollars almost instantly. This is a promising sign for the future of this country.
In the meantime, the important thing for an investor is to see if the US market as a whole is doing well, and very clearly so, the SP500 has been a pleasure to watch for several weeks now.
A new support is clearly emerging and will surely be retested for validation after the summer. This is located in the green zone above $4,100.
Turning now to cryptos, let’s start with altcoins for once:
For once (thanks SEC) we have a nice attack on altcoins without even having a violent bearish move in Bitcoin.
What we’re seeing on orderflow is a drastic drop in Open Interest (number of open leveraged positions) due to liquidations (the last line shows a nice red candle), plus funding bursts in the red (penultimate line) further confirming that buyers have been rinsed out.
A good sign for the future? CLEARLY. Altcoins that are no longer bought by the little guys are altcoins that pose bottoms. It will still take several days to recover from this news, hoping that no altcoin is banned from the US, otherwise you can certainly kiss it goodbye.
For King BTC, the support zone seems to be below $24,000.
Will we go just that? Not sure. For once, Bitcoin’s order flow is irrelevant, as there’s not much going on since the price isn’t moving.
So before I give you my opinion, for you “remontada” or “flop”?
The time of year is not conducive to a market rally. We must remain wary, but confident! Wary, because a fall below $20,000 with a major event would still hurt Bitcoin enormously! But confident, because in itself, nothing has changed in the last few months! We’re still working with a new technology that will surely revolutionize the system in the years to come. What’s more, with altcoins coming under attack, there’s no longer any particular reason for Bitcoin to make a strong downward move. If it exists, it will be weak. I still think we’re likely to see a rise in early summer. Why? Because when everyone’s looking down, no one realizes that the elevator is going up.
Regarding your favorite altcoins, stay on your guard, the SEC has strong power over the US and the world and if they were to ban a token/coin, not sure it will manage to recover. In the meantime, perhaps sticking to “safe” values such as Bitcoin and Ethereum is the smartest thing to do.…
Entrepreneur & Dad, passionate about cryptocurrencies, I describe for you the technical analysis. Cofounder of Cryptocademia, a free platform to learn all you want/can about blockchain ! Meet you there at https://www.cryptocademia.com
My job: look at charts and interpret them for you.
Beware, I do not know all the truths.