The market decline scenario is unlikely
The market began to redistribute money from the resistance to the current support. The current breakthrough of the upper resistance limit may turn out to be a false quit out, but for now, the key scenario is the BTC growth continuation, 8848 Invest’s analyst Mark Sorokin says.
There is a quite curious situation on the market. Most market tools are currently trying to quit out of their flats up. The key reason for the current growth is that the tools were within their flats for a very long time, that is, there was a significant money flow from resistance to support.
‘The BTC resistance is the area of $60,000, the ETH — is the area of $4,000 were evidence of the fact the market began to redistribute money from resistance to the current support. This was the reason for the formation of such large flats after the fall,’ the expert notes.
At the second part of the week and on the weekend, there was a positive trend. The BTC price has gone beyond the flat boundaries above $43,000. Given by the coin chart, this level represents its upper resistance limit.
‘However, it’s a bit early to say the market will immediately begin to grow to $60,000 and above, since the coin needs to gain a foothold higher and continue its upward dynamics,’ Mark Sorokin emphasizes.
The current breakthrough of the upper resistance limit may turn out to be a false quit out, and the asset price will continue to fall to flat. However, for now, the key scenario is the BTC growth continuation.
‘ETH has broken the $3,000 mark, which indicates the coin is ready to go further. If ETH will continue the growth we should expect an update of the previous resistance above $4,000–4,500’, — the expert notes.
There is still low LTC liquidity, the number of market participants has decreased apparently. The tool continues to accumulate volumes, but generally, it’s worth expecting the tool will also begin to grow. As well as XRP, which also demonstrates the flat movement, but may resume its upward dynamics shortly.
I am not considering the option of the market reduction so far. A false quit out and return of BTC and ETH to its flats will indicate the beginning of another distribution, during which we will see a price decrease of key market tools to their lower accumulation limits,’ the expert summarizes.