Nov 11, 2020
The probability of a corrective downward movement is keeping
The market keeps an upward trend, while the BTC global reversal conditions aren’t currently observed. At the same time, the altcoin market situation keeps uncertain, 8848 Invest’s analyst Mark Sorokin says.
Last week, the cryptocurrency market situation was developing in quite an interesting way. The BTC price broke the level of $14 000 on some trading platforms thus the largest cryptocurrency has reached a potential reversal zone. At the same time, it should be noted the buying culmination hasn’t been observed yet, which indicates the market will try to climb higher and find an even larger liquidity volume again, and only after that will try to form a reversal.
‘At the beginning of the week, there is a certain local correction currently, however, in my opinion, it’s formed only within the framework of the liquidity increase. Perhaps the market will be able to get this volume at the lower range and continue its upward movement,’ the expert notes.
It’s worth noting that generally, the market continues to grow. BTC reached the $14 100 level, where additional volume and some buyers’ stop-losses were found. The closest largest cryptocurrency’s target level maybe $14 500–15 000. Further, you need to look at the point where the correction will end, liquidity gain will resume, and, accordingly, growth will resume also.
‘As for the downward scenarios, I am not considering them yet, so, in my opinion, there are currently no conditions for a global reversal. The market can go down only within the framework of a correctional movement, but not as the trend one,’ Mark Sorokin notes.
Altcoins
Many altcoins have formed a reversal pattern, as well as sufficiently large support levels, therefore, taking into account the correction, they can further reverse and continue its upward movement. For LTC we should expect a correction to the level of $49.50. The nearest target of the largest altcoin ETH is the level of $372.
However, at present, you need to be very careful, since all local purchases can be quickly fixed, after which corrective movements will begin.
