The market needs time to calm down

The market growth at the end of last week can certainly be described as a true breakout. BTC is now in a potential area of strong resistance, we can expect the coin to go higher. The major altcoins have also made a turn and purchase formation. The crypto market needs time to calm down and acquire additional plasticity, 8848 Invest’s analyst Mark Sorokin says.

The cryptocurrency market keeps its positive dynamics, as it was expected a week ago. The BTC target level was to update $12 500. Thus at the bottom, sellers’ locked volumes were formed, it was assumed the coin will update the local maximum. In reality, BTC managed to go even higher.

‘Likely, it isn’t a false breakout, but a true trend movement. I expect a slight correction to support zone at $11 300 now, out of where liquidity will begin to pick liquidity and turn up. In a case it was a false breakout, the coin would go above the high and would try to start accumulating volumes around the stop-losses. The current accumulation is forming higher. It looks like this is a true breakthrough. We are waiting for the correction and trend continuation of the trend,’ the expert notes.

BTC is currently in a potential area of strong resistance, however, sellers haven’t reacted to it yet. The coin can be expected to go higher — to look for liquidity, perhaps in the $15 200 area, as previously suggested, or higher. Sellers can join the game there.

Altcoins

For major altcoins, reversal and buy formations were also realized. Last week, there was ‘mirror level change’ and now an upward scenario is being realized.

‘LTC is in the first potential resistance area. We should expect another flat trend, correction, volume accumulation, and further continued growth on it. Reaching the previous high at $67 and further growth to $84 is probable. For more detailed forecasts, we should be guided by the actual market view,’ Mark Sorokin says.

The further LTC movement can be influenced by news that can provoke market participants and become a trigger for retail investors’ actions. For other coins, the situation is similar. The DeFi sector is in a drawdown now, it has a fairly fresh market structure that needs time to load up with liquidity and eliminate ‘provocations’ observed, for example, in 2018 for BTC.

‘Other cryptocurrency market areas also need time to ‘calm down’ and acquire additional plasticity. Generally, it keeps positive, we expect the upward dynamics to continue. There are currently no major volume spikes or buying culminations. It’s indicated by the absence of large culmination candles on the BTC chart. We are waiting for a correction and continued growth,’ the expert sums up.