With the sprint made last Monday, it’s only natural that we should stagnate for a few more days. What’s more, interest rates and Jerome Powell’s speech this Wednesday 1st, November should give the markets a logical follow-up.
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A crazy week
I should say, a crazy Monday! But let’s just say that the rest counted for a little bit too, as altcoins were able to enjoy it, for the time being.
Last week, we wrote together that we had two choices.
The first was orderflow showing signs of running out of steam, which are usually not mistaken. The second represented a significant accumulation of sellers, which could lead to a short squeeze towards $32,000 and more. Fortunately, it was the second solution that took place! Good news for the ecosystem, which needed it. Even so…
A decisive next step
Even though what??? Bah even if sentiment has clearly changed, do you still see a lot of people lamenting? It’s a concern not to see those people lamenting the price of Bitcoin anymore. The real question is, do all those who wanted to buy lower have FOMO? The answer is decisive, because if they have in then we’ll lower it. If not, well, we’ll certainly continue the pump.
In any case, for the time being, we’re in a range that we’ll have to keep an eye on. In fact, we’re likely to see false exits from the top as well as from the bottom, to stretch us as far as possible. So note the top and bottom of the range and wait. In general, avoid buying the top of the range and selling the bottom.
The first is the Fear & Greed index.
This has moved into the greed zone. This means that the population is rather happy and bullish on the market ahead. You have to be careful with sentiment, especially when investing.
The second is the behavior of altcoin investors. What’s happening has not been seen for a while.
A notable increase in open interest is underway, with funding moving into positive territory (an event accentuated by selling liquidations), meaning that many people are buying altcoins. Why? Either because assets are switching to altcoins (I don’t think so, given the timeframe) or because some people want to prepare for a potential alt-season following Bitcoin’s pump, which is highly likely.
In fact, following a sharp rise in Bitcoin, Ethereum usually follows, dragging all the altcoin ecosystems with it and thus creating a bullish wave on altcoins, the reknown alt-season ! However, to have this kind of event, new players on the market are needed – i.e. a substantial influx of new liquidity – and that’s not the case right now! So beware, it could all be a clear trap for altcoins.
Sentiment will be the key to the next step, to have a new rise, unless ETF announced, we should see liquidations on altcoins or that a bearish sentiment shows itself, and this will pass by liquidations on the bottom of the range!
The good news is for fans of the EGLD token by MultiversX also for last week which installed its first weekly W of everything bear market. Followers of this project must be happy.
I’ll end this article on this good news, and hope to see you next week in the green or still in the range, to see if sentiment has changed! Look out for Jerome Powell’s speech on Wednesday that may have a strong impact. Have a great 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.