BTC at the potential reversal zone threshold
The cryptocurrency market retains the further growth potential, although the upward price momentum is adjusted by the volume addition and price changes. The closest BTC price reference is the level of $9 500 still. The situation at the altcoin market is developing a little faster as the alts have reached their historic lows, 8848 Invest’s analyst Mark Sorokin notes.
The market situation hasn’t globally changed over the past week. During the significant market fall in mid-March, there was a powerful exit of trading volumes. The balance has changed and the market is steadily moving up now. It points to the potential for further growth as the liquidity addition is the nature of this movement.
‘Accordingly, you can see how the price of key cryptocurrency assets is constantly being corrected against previous quotes, thereby allowing large players to pick up an additional purchase volume from lower prices and to budge up all excess ‘travellers’ who take liquidity from ‘smarts’, the expert notes.
The BTC price has come close to the first potential reversal zone at $8 200 now. The lower edge of the reversal zone is the level of $7 750.
‘$7 750–8 200 is a potential reversal zone, but I’d bluntly say, most likely, global reversal can’t be seen in this range. After reaching this level the rollback to the previous support level in the region of $7 000–7 100 will follow,’ Mark Sorokin notes.
Globally, growth is currently seen, the prerequisites for it to end, can be only expected after reaching the level of $9 500–10 500, where the previous resistance was formed, the previous volumes accumulated and their distribution has began. The price is likely to move there.
‘I don’t exclude as I previously noted the possibility of ‘overhigh’, the highs renewal in the region of $10 500, followed by a new balance change and global volume distribution up to the level of $5 500,’ 8848 Invest’s analyst notes.
According to him, the closest reference point is the level of $9 500 still, upon reaching which it’s worthwhile to closely monitor the price change, as an accumulation of stop-losses and breakeven positions of those traders who entered the position ‘correctly’ and keep them in the hope of continuing BTC falls there may be found.
Altcoins
The situation is developing a little faster for altos, as alternative coins previously reached their historical lows. Ethereum (ETH) moves to the area of $250, the first potential stop will be the level of $220–250. This is its potential reversal hone, it can begin to roll back to the nearest support level, seen around $162.
‘The situation is identical for Litecoin (LTC). Both coins look positive, according to LTC it’s likely to reach the level of $55. This is a real scenario in a case if the coin will update the maximum of $48 to move further to the level of $55 and higher,’ the expert notes.
Fundamental
In general, the news background at the cryptocurrency market can be described as negative, but the market is growing despite of it. It can be stated as even more plus than minus for the market. The more negative news, the more retail traders bet ‘against the market’, which allows institutions to gain long positions and move the market up.
‘The ‘trader’s minority’ driving the BTC price now, while the majority are intensely ‘shorting’ their positions. This is also observed in classic markets. For example, the Dow Jones index will also continue to recover, since many have been put in short positions,’ the expert summarizes.
