Last week, the BTC rate rose to $9 500, then the growth slowed down and the new large accumulation formation has begun. The probability of further growth and updating the level of $10 500 remains anyway.
The situation will be resolved this week, on the largest’s cryptocurrency halving eve, 8848 Invest analyst Mark Sorokin says.
According to last week’s results, it can be stated there realized one of the market scenarios we discussed a week ago. In particular, the achievement of the level of $9 500, growth slowdown, and the new large accumulation formation in this zone. The market ‘hovered back’ in liquidity, the sellers’ stop-losses has executed most likely.
‘The big surge can be seen on the vertical volume chart, this is the purchase culmination. I would also like to note that the current formation, drawn on the hourly chart, contains locked buyers’ volumes, which indicates the market will most likely try to distribute the volume to at least $7 500, or even slightly lower, in the zone where the previous growth source was located’, the expert said.
This week the closure of the long position, fully or partly, should be expected. In a case of the complete liquidation of positions, the global market reversal and decline to $ 5 000 and lower can be expected. If the institutions will keep the buyer’s volume and push them ‘to hang’ in their positions, the decline will continue to the nearest growth source in the region of $7 000.
‘Further growth and updating of the $10 500? Yes, such a scenario is still present, but the locked customer’s volumes should be realized and their stop-losses should be executed. This will be followed by the volume redistribution and growth to $10 000 and higher will begin’, Mark Sorokin predicts.
However, a fairly large formation is observed on the market now — the large accumulation seen on the hourly chart. Therefore, most likely, the market will distribute volumes up to $7 000–7 500 or slightly lower, followed by an attempt to gain further growth.
‘Now I expect a local drop, but we also need to remember behind the near minimum there may be a quick reaction of buyers’ stop-losses and money redistribution, which will bring the BTC price to the level of $10 500,’ 8848 Invest’s expert notes.
Thus, last week we saw the market reaction to the increased liquidity area, where the previous major participant’s position was formed. There is an intensified struggle between the buyer and seller now.
The alternative coin market is in a similar situation. Except for small discrepancies, the situation is identical overall. For the main coins, it can be also expected a local volume distribution and, accordingly, the market fall resumption.
The digital coin market and the cryptocurrency industry as a whole froze on the eve of the halving, which is less than a week away.
‘Everything will be resolved there. This event will be the main trigger for further market growth or decline. Everything will depend on how this week will end — whether the market will fall or flat movement will remain’, the expert summarizes.