The price of Bitcoin continues to stagnate and indicate a decline. The traditional market is showing a sign of turning around for a few weeks. A fall is coming, the question is: when will it arrive? For me, not this week!
Warning: This article does not constitute investment advice or an invitation to invest. It is for information purposes only.You are the only one responsible for your trading and investment decisions.
Don’t forget, too, that when it comes to trading, it’s essential to at least secure your winnings in a cold wallet. For an easy-to-use cold wallet, we refer you to D’Cent, whom we’ve already introduced to you. We’d like to thank them for sponsoring this column.
An efficient week
Last week, we made a nugget scenario that came true almost immediately! For those who had the opportunity to share my opinion, I hope it went well.
We had had a double liquidity hunt as expected, first bearish to calm bullish impulses on altcoins, then bullish to liquidate sellers. A market completely manipulated by the big wallets and exchanges that lined their pockets during these moves.
A price stagnation then followed, a stagnation which should gain in volatility this week!
Bitcoin, target $30,000, sir
My headline is very clear this week, I’m bullish. And we’ll try to find out why together.
A quick update on the SP500
Before we talk crypto, let’s talk macro, with the beginning of a reversal in the SP500 which, since the start of the year, had been plotting its course northwards!
It’s a well-known fact that when a trend lasts too long, or is forced, the market decides to turn around. What’s more, we know that on the US side, things are looking a bit bleak.
If the market really does turn around, it’s the 4325-point low that will be targeted, and if there’s a dip, Bitcoin will also be impacted. This could happen this week, with a resumption of volatility, as we have some important dates: the inflation figures and the PPI, mutually on Thursday and Friday!
Orderflow of Bitcoin and Altcoins
As usual, I turn to Bitcoin and altcoins orderflow to determine my week. And today, I’m happy because I can be direct.
On the Bitcoin side, the point of interest is the long ratio and OIs. Here, the long ratio has recovered nicely, with OIs that aren’t moving too much, and funding is in positive territory. All this points to bullish investment by large portfolios, but why large ones? Because the small ones trade altcoins, you see, it’s supposed to make them rich.
Indeed, we see completely opposite behavior on the altcoins side:
They’re shorted! And yes, despite a stagnant OI, meaning that longs and shorts are opening and closing without a majority, it’s indeed the selling balance that’s winning out, with funding sinking into the red. In this case, the conclusion is simple: small hands are betting on a fall in altcoins… A choice opposed to large Bitcoin portfolios, and one they are likely to regret.
Easy for me to say this week, we’ll be bullish for the most part, due to the bearish behavior of altcoin players. Be careful, however: don’t hesitate to follow me for an update on these charts, as a sudden change in the trend could have a negative impact on the market. (e.g.: rise in IOs and funding meaning long) could have an impact on the week.
In any case, if you’re just doing DCA, don’t get too hung up and buy on key levels that appeal to you. Then remember to store your cryptos in a cold wallet, like the one provided by our partner D’Cent. Have a good week and see you next week! !
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.