The market broke the support and began gaining trading volumes
The benchmark for BTC is the $53,000 level still, and the key coins are gaining volumes to get enough liquidity for reverse and move to the upper resistance limit. At the same time the key market scenario is growth continuation, 8848 Invest’s analyst Mark Sorokin says.
BTC, ETH, XRP, and other key market tools showed flat movements last week. This is the market scenario assumed before. After updating the local minimum, BTC didn’t go down but began to gain a position immediately after this level. It can be considered as a fairly positive signal, which indicates the market will go up.
‘I consider the $53,000 mark as a BTC benchmark, for ETH it’s a range up to $4,000 and possibly higher. Ideally, it’s a historic high in the $4,400 area. For XRP, this is the previous maximum at $1.8–1.9. Accordingly, I am inclined to resume growth so far, because the market hasn’t been able to develop a downward movement,’ the expert notes.
In a case of key market tools that had broken the support level and formed a new small local accumulation there, they would have continued to move down. However, last week the picture was different. BTC and the dominant altcoins broke the support levels and began gaining trading volumes.
‘It indicates the market participants’ stop-losses triggered and open interest was lost. Therefore, now the coins are gaining volumes to have enough liquidity to make a reversal and move to the upper resistance limit,’ Mark Sorokin says.
Fundamentally, the Chinese issue, had a positive impact on the future and prospects of the digital asset market, as significant amounts of liquidity were released, which large market participants were ready to absorb. This is what will push the prices of the major coins up.
‘That is why the key market scenario is growth continuation, entering new ranges, and reaching highs. Some tools will be able to update their historical highs. A less likely option is the emergence of new significant fundamental factors which will trigger a trend change,’ the expert concludes.