This week, we’ve reached the crucial zone I’ve been waiting for. From now on, we’re going to have to fight against the sellers who want to turn the market around.
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Last week’s summary
We pump! The summary is simple, we came to a perfect place.
Why perfect? Perfect for taking profits. The area indicated in red is called the sellers’ reload zone, the place where they have to show up to turn the market around! What’s more, in this zone, we had two important liquidities. At $48,189 and $52,088, we touched the latter at the end of the week to show just how virulent the bulls are in this market!
On the other hand, if the market is going to turn, it’s going to turn now. If the bears lose this zone, then there aren’t many obstacles left. Prepare for battle!
Where are we going?
This return to $52k means we can look forward more calmly to a future bullrun, as since the ETFs came out, thousands of Bitcoin have been bought every day via this channel. A buying force we’ve certainly been lacking! However, this rise is accompanied by other less glamorous news, notably the ongoing FOMO on altcoins.
ETH – In directive
As usual, the king of altcoins is Ethereum. It’s growing fast and even hit $3,000 today!
However, if it is to do like its fellow Bitcoin, then its push is far from over! And we should see Ethereum back touching the $3,500 mark, which corresponds to two things.
- The seller reload zone, shown in red
- The nearest liquidity zone, exactly at $3,580
This also correlates with the ETH/BTC pair.
In this pair, we’re looking for ETH to regain its dominance over BTC by moving towards the red boundary. A rise like this would surely herald an altcoin season where we’ll need to be sharp to avoid the backlash at its end!
FOMO takes hold
However, to have a scenario like this one that would lead to enjoyment on altcoins, two things would have to calm down:
- The first? It’s the FOMO already underway on altcoins:
In fact, altcoins are constantly seeing an increase in the number of positions opened. Combine this with ever-increasing funding and you get widespread FOMO on altcoins, which is never a good sign from a trader’s point of view.
- Bullish market sentiment
To see this sentiment, I use spreads. These are the difference between the leveraged price and the spot price. If they are positive, this means that the leveraged price is above the spot price, indicating a bullish attitude on the part of the players. The opposite is true for negative spreads.
Sentiment is thus clearly positive, which means that the price will no longer rise, or even fall, until it returns negative.
Conclusion
We’re clearly close to a nice bullish continuation on the cryptocurrency market, particularly altcoins led by Ethereum. However, FOMO is already setting in, and we’ll need to be wary if we need to retrace in the short term to break some people’s leveraged ardor.
In any case, it’s important to stay calm with plans in place, and above all to stick to them. This will save you many losses!
Have a good week and see you soon on the markets!
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.