After finally breaking towards $30,000 for Bitcoin and $2,000 for Ethereum, it looks like the market is already on its last legs. We’ll try to break down the pluses and minuses together for a potential bullish continuation.
Warning : This article does not constitute investment advice or an investment inducement. It is intended only as an article strictly informative. You are the only one responsible for the trading and investment decisions you make.
Debrief of the past week
After 2 weeks without news of my vision on BTC, admit it, you thought I had disappeared. But no, I’m still here!
We had a start at $30,000, a rise of its big buddy Ethereum and an attempt to start altcoin season. We’ll see in the analysis what the real story is on that front. However, what I’m taking away is the daily divergences that have set up on Bitcoin. Both on the RSI in purple and on the MACD below. These are not yet confirmed, but could well become so, announcing the end of a short-term rise and the 2023 rally.
Analysis of the week
What seems to be very short-term good news on the Bitcoin side is that the whales are starting to come out of their short position.
Indeed, on the graph above, we can see that the Open Interests (OI = number of leveraged open positions) have drastically increased with a drop in the bid/ask ratio when the $30,000 mark was broken.
This means that large wallets did not want to go higher right away. And not missed, they are flipping Bitcoin. The good thing, however, is that they are already exiting with Bitcoin at $29,500, meaning that the bearish move shouldn’t last.
On the other hand, Bitcoin’s dominance is waning, as its bearish attack is not yet able to bring down altcoins or Ethereum strongly.
We are in the beginning of an altcoin season, coming from Ethereum as usual! What we should see now is a confirmation of this, with a bullish return driven by Ethereum.
One thing to keep in mind in our calculations, however, is the FOMO sentiment that may be building on altcoins.
And that’s where the problems come in! Indeed, we can see an increase in OIs quite strong, but also in funding! Showing that altcoins are starting to be bought powerfully in leverage, which is not a good sign for a healthy rise!
We may soon have one last leverage accumulation with a false bullish recovery in Bitcoin unless FOMO calms down on altcoins. Alas, I’d like to say that Ethereum alone can rally the market, but it’s not true, it will need validation from the big king. From my perspective, I see some resilience in ETH and altcoins for this week despite bearish attempts by Bitcoin. We’ll see if this holds or if investors end this bullishness…
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.