In cryptos it’s like that, all it takes is a little runaway for king Bitcoin to remind everyone that he’s the boss. In fact, this morning’s survey changes the last few weeks with a short-term reversal to avoid the altcoin runaway.
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Bitcoin resistors do their job
Over the past few weeks, every rise in bitcoin has been inspected, and we’ve all been trying to predict more or less the price for the next few days. However, resistance lines is the most effective way of determining where the price is going to stop!
Indeed, the areas designated as support today were resistances yesterday. We can see that they had played their part, and now it’s the $45,000 – $48,000 resistance that has strongly rejected the price! Was this to be expected? Of course! However, the rejection is stronger than when we arrived at $37,000. But why?
Analysis of altcoins that got carried away
Sentiment on altcoins has started to change, and we’ve seen it even more aggressively since the end of last week.
Highlighting their bullish recovery
Total 3 represents all cryptos except Bitcoin and Ethereum, i.e. all altcoins! We can see that last week, several green candles flared up, causing all or almost all assets to rise, especially over the weekend. In fact, assets such as $EGLD and $SOL returned to prices not seen since the spring of 2022!
Orderflow of altcoins
This is supported by the altcoin orderflow:
In order: Bitcoin price, open interests and altcoin funding
We’re back to the same number of open positions in altcoins as in the last bullrun for altcoins… Rather a bad omen for what’s to come! Why is this so?
People who are new to the market or very aggressive tend to go in search of fast performance. To do this, they turn to altcoins using the tool of leverage. However, this phenomenon has the opposite effect! Indeed, by installing this leverage, the markets tend to want to liquidate them in order to recover their money, resulting in short/medium/long-term reversals on the markets!
Conclusion
The turnaround was inevitable. Is it sustainable? That’s the other question, and we’ll have to wait and see what happens, particularly in terms of leverage and market sentiment. One thing’s for sure, though, and that’s that newcomers are starting to show an interest again, and scammers are making a comeback!
Two details which show that this year’s top is beginning to take shape, although it’s hard to believe that it has already arrived, but the signal is rather bearish over the medium term. This means that the next rise, if it takes place, will surely be the last before 2024.
Have a good week after this analysis, reassuring or not for you! And we’ll be back next week with more exciting news.
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.
