The BTC price is being corrected now, further to the market benchmark and the correction of key alternative coins has begun. Although the slight panic at the market, all happening can be described as a classic local correction, 8848 Invest’s analyst Mark Sorokin says.
Last week, the digital asset market began to form a distribution for all major tools. BTC hasn’t been adjusted so much showed itself best of all, although the setting of the new flat boundaries continues currently. The asset price has gone down to the future accumulation lower limit.
‘Apparently, a new accumulation is already being formed. Now we should expect the BTC movement to its upper limit,’ the expert notes.
Last week, there was a generally strong quit out from savings, which indicates a future medium-term reversal, but for now, market participants are trying to redistribute the accumulated volume and form its long positions.
ETH also declined to the level of the previous support source level around $1,600, where the previous accumulation was observed. The coin corrected, the previous long position was closed since someone bought this volume at the top.
‘In fact, major market participants opened shorts and closed their long positions. For ETH, we should also expect the formation of a new flat,’ the expert notes.
LTC went down to the area of the previous upward movement source, where large accumulations were found at the area of $170. This is the so-called ‘moving zone’, near which the asset price is currently located. The altcoin will try to turn around and go up again.
‘Several conditions must be implemented for this. Firstly, you the new flat sidewall lasting at least a couple of weeks needed. Sharp upward movements are possible, but they will be provocative, trigger-like, to get rid of unnecessary buyers. Thus, for LTC, I expect the formation of a broader accumulation,’ Mark Sorokin notes.
XRP, which reached the reversal zone, and fell from there is of interest. After the rapid growth, the market interest in the tool dried up, the buyers’ stops were knocked out, and the asset price began to decline back to the support source quickly. The price of XRP is aimed at the level of $0.8–0.7, after reaching which there is a high probability of the upward movement continuation.
‘There is a slight panic at the market, although nothing serious has happened — all happening can be described as a classic local correction sent the BTC price down,’ the expert notes.
We’re waiting for the volume redistribution, but it’s important to see a new large accumulation with a locked sellers’ volume. This is one of the major conditions for the growth resume.