The market tools are forming downward flats
BTC is moving to a minimum of $39 000–40 000. ETH is testing a down liquidity source at $3,300, while the scenario of key tool’s continued decline is more likely still, 8848 Invest’s analyst Mark Sorokin says.
The market situation didn’t change significantly last week. Low-volatility flats with a downward trend are forming in the digital asset market. Generally, this trend can be defined as accumulation.
‘Confirming my past forecasts, I expect a local market decline to the nearest minimums still. For BTC, it’s a range of approximately $39,000–40,000, depending on how large stop losses volume will be found beyond this minimum,’ the expert notes.
If there will be no significant market reaction after updating this minimum, the market will continue to decline.
ETH demonstrates a test of the liquidity source at the level of $3,300, where the previous flat was located. The coin can go down to this area to test this source and form a new accumulation.
‘Key altcoins are gaining liquidity. Impulse quits out from accumulations with consolidation beyond the range boundaries will indicate further market situation development,’ Mark Sorokin notes.
The key scenarios are still additional liquidity gain or the continuation of the fall on the volume retention as long as market participants keep their open interest. The scenario of the key tool’s continued decline seems to be more likely in this particular situation.