Two scenarios for cryptocurrency market
The cryptocurrency market has two key scenarios, became more sharp at the end of November, 8848 Invest analyst Mark Sorokin says.
The situation is evolving within the framework of the previous decline forecast.
‘The market is declining, previously there was liquidity addition and shorts. This is the logical conclusion of this pattern and the market scenario as a whole. When the volume reaches, support or resistance levels are usually updated,’ the analyst notes.
According to him, the market has updated support in this particular situation. There are two options now. There will be formation of a new flat, which will take at least a month under ideal circumstances. To go up, a substantial increase in liquidity is required.
‘If we don’t see this, BTC will continue to decline to the following support area. The first one is a transition zone of $ 5,500, where a stop can occur. Until the price didn’t get there, it’s too early to talk about the consequences of such a scenario,’ Mark Sorokin recalls.
According to him, if the BTC price doesn’t stop in there, the market expects a fall to the first support source at $ 4,000. There was a large accumulation, from which growth at the beginning of this year began.
‘Now we can assume that the volume distribution will last up to a source at $ 4,000. Apparently, the market will move there,’ the expert summarizes.
The situation at the altcoin market can be described as ‘depressing’.
‘All altcoins were in accumulations, and there has been a way down. As the accumulations lasted long enough, at least another 2–3 weeks the market will be in ‘bearish’ downward trend,’ 8848 Invest analyst said.
XRP is expected to further decline with targets below $0,12. Most likely, the token will go there. Etereum will also fall, and Litecoin may even update its previous low.
‘This is a normal evaluation within the framework of the developing ‘double bottom’ formation. As long as the ‘bears’ rules the market, there is nothing left but to consider a downward movement,’ the expert summarizes.