A potential increase of market liquidity will contribute to further BTC growth in the region of $8 000, and active sales of digital coins by retail traders will be a good help for a large set of volume by institutional traders and global growth of the entire industry, 8848 Invest’s analyst Mark Sorokin believes.
On Monday night, the BTC price fell, testing the support range of $5 800. Buyers’ reaction indicates a potential increase in liquidity, which will contribute to further growth in the region of $8 000. For this, the market will need to ‘absorb’ the current resistance at $6 600. We should wait and check the market reaction, merging or continue to fall with the renewal of lows in the region of $4 000.
The market is accumulating volume now, the support range where sellers who bet on the fall are locked has been also updated. Most likely, the liquidity increase indicates an upward movement, as the nearest reversal zone after the last strong falling impulse is above $8 000.
‘Apparently, the market should find the seller’s stop-losses in this range. I suppose they can rise higher, as the main source of the falling trend is the range of $9 000–10 000. After that, there will be a volume redistribution and the global turndown with a possible update of the lows,’ the expert notes.
Another possible scenario is an add-on short volumes by the market. The BTC price may turn down, merge the previous support and continue to fall below $3 000, as the sellers’ interest zone is located there.
There is a large number of buyers’ top-losses can be found below. This is the new liquidity which can be base for new volume redistribution’, Mark Sorokin notes.
It is similar to the altcoin market. Two main scenarios are there. An upward movement and test of the main resistance, or, accordingly, a further fall.
LTC has a reversal zone below $20. Shortly, large market participants will get the opportunity to add a new volume and go above the previous maximum in the region $80 and above.