While the market as a whole continued to distribute volumes last week, the benchmark market’s and key trading tools’ decline slowed significantly. Although the current situation can’t be described as a critical one, the market recovery may be delayed for several months, 8848 Invest’s analyst Mark Sorokin believes.
The volume distribution for most of the trading tools continued last week. Therefore, the key digital assets continued their decline beyond the previous support range.
’It was expected generally. There were local pullbacks, which were joined by a large number of market participants. Accordingly, they were tried to be ‘shook’ out of the market,’ the expert notes.
As a result of the decline, BTC and key altcoins updated their local lows. At the end of last week, there were sales culminations, and now it’s possible to fix the market benchmark’s distribution phase end.
‘I expect the decline to slow down, the beginning of a new volume distribution phase, and the BTC recovery to the area of $60,000. However, it’s worthless to expect a quick turnaround. After the first upward impulse, the long-term liquidity gaining should be expected with a high degree of probability,’ Mark Sorokin says.
It’s also possible the key tools will continue to move down. Generally, the reversal may take several months.
The situation is similar for ETH, LTC, and key altcoins. Now alternative coins need to ‘digest’ the entire trading volume and accumulate their new long positions. After that, we should expect a growth resumption.
‘This is especially clearly demonstrated by the market movements of the altcoin XRP, which reached the previous support ranges and fell into the buyers’ stops area. Now I expect a volume re-selection and the continuation of its upward movement,’ the expert notes.
Although the current situation can’t be described as a critical one, the market recovery may be delayed for several months.