After moves to both the upside and downside, the markets send clear signals that they are in a consolidation period. As previously covered, the market moves in two directions – up and down. Between them, there are sometimes consolidation periods. What does that mean for Bitcoin? Let’s dive in.
*BITCOIN*
The last analysis played out nicely. BTC did reach $28 700 on April 4th and got to a lower point. This move is called a liquidity grab and traps short sellers, who set their Stop Loss around the level BTC reached. That is why it is vital for traders to have clear targets and follow the liquidity in the market. BTC has once again supported the uptrend of the middle line in the parallel channel. However, the continuous reach in the price of support/resistance indicates a probable breakout from the zone. With that being said, BTC has its recent support from buying orders set between the levels of $27 790 – $27 660. The zone is thin and it is not likely to withstand selling pressure. The next area of support for BTC is between $27 200 – $26 500. It is wide in price range and can result in high volatility if reached. Overall the market sentiment is bearish and a decline is in favor of the current condition.
*DOLLAR INDEX*
The Dollar looks ready to take bounce back to the recent high. Although news around the Dollar has been very alarming for the U.S. economy, it is possible that we see funds being deployed to strengthen it. The correlation between the Dollar and BTC is strong and the rise of the DXY can further drive the crypto market down.
*MATIC*
Matic did not manage to gain enough momentum from buyers in order for them to push the price above a big resistance zone. That is why it is still considered a major level for Matic to battle. The next support zone for Matic is located 1.50% further down, at $1.11. This setup makes it profitable to catch a retracement in price if Matic reaches the level. Not being able to support it, however, will put Matic in a position of volatility and a weak support zone. It is currently placed between $1.07 – $1.058.
*SOLANA*
SOL has formed a double top compared to the recent high. Usually, when this occurs in an upper parallel channel it indicates slowing momentum. The price reached a selling zone but it was not enough from long buyers to flip the level into support. SOL is still pivoting around the downtrend line after breaking out from it at first. That is why in the last analysis it was indicated that a short trade on SOL can be liquidated fast – the price broke through the line only to execute the stop losses of short traders. The next support zone for SOL is between $20.30 – 19.90. The major support however indicates to be $19.62. At that level will be profitable to catch a move up from short sellers taking a profit.
