The days Friday and Saturday were with little volume and mostly to the downside in the crypto market. However, Sunday brought the usual volatility and smaller currencies have flipped green.
With the Bitcoin Dominance going down and funds being transferred to other coins, traders are speculating on a potential “Altseason” being around the corner.
How can we determine an “Altseason” starting and how should we act? Let’s get to it.
BITCOIN
BTC showed little movement in price during the last two days. The price has been slowly going down to the moment where BTC is again trying to find new highs.
The weak wicks to the upside are not convincing for the bulls, as losing the $30 300 level will cause selling pressure.
The plan on BTC stands the same. Entering a long position when the price reaches 21-day MA will be the ideal set-up for a buying opportunity.
However, between $29 900 – $29 500 there are buying orders that will try to protect the prize. Unless they are moved, it will be difficult for the bears to push the price down significantly. This means that we can see a new leg up with big volatility.
The major resistance for BTC still remains $31 300 – $32 000. If a wick in the BTC price reaches these levels that can indicate a short trade set-up to be placed.
BITCOIN DOMINANCE
The BTC D. Index fell today and that caused a slight relief in altcoins. This move brings up the question whether we will see the altcoins rip up as they take over the market.
It is unlikely that we will see an Altseason anytime soon, as BTC spot buyers and overall holders will try to protect the current price even if dropped. Many buyers did not get the opportunity to enter the market, so they will be looking to find a good entry.
We will most likely see some relief in the altcoins but not for long. If BTC hits its major resistance level or loses momentum at its current state, it can get ugly for the other currencies.
MATIC
Matic has shown strength in the past week and although its price pumped, the long-term picture for Matic is bullish.
The price has risen up through the major resistance that was shared more than ten days ago. This sign can be interpreted as bullish as long as the price keeps its momentum.
It is the first time Matic has come on top of all important MAs on a Daily chart since October 22nd and then 50% to the up followed. The price has not risen significantly since the overcome of the MAs and that can be an opportunity worth-taking.
The next major resistance for Matic is between $1.244 – $1.266, which is approximately 6% from current price. It is likely that if the price pumps we will see a great sell wave there.
That is why there are two preferable setups for Matic right now:
- An entry at Matic’s current price with the target of hitting the major sell zone.
- Waiting for confirmation by BTC with the opening Monday candle or at the open of the U.S. stocks market. Then entering lower.
MONERO
Monero lacks volume and can result big candles to either side. Despite its lower traction, the currency is set up in an ideal position technically based.
The price has been steadily climbing in the past month with just over 12%. This steady increase has helped the coin overcome pivotal levels of resistance.
There is a major selling zone located just 1.3% above current price. It can be assumed that bulls will take profit and sell their positions. This can lead to Monero retesting 21-week MA, $157, which makes it a preferred setup for a long position.
Breaking above the selling zone will bring Monero even more momentum but it is unlikely at this current state. The next resistance is located between $181 – $182,8, which is 10% up from the current price.
HEDERA HASHGRAPH
HBAR has a similar setup to the previous two coins. An initial big rise and hen a slow pullback.
The price is currently moving along with the 50-week MA. Closing below it in the next week will indicate that HBAR is losing its strength and buying volume.
Closing above it, however, will mark a bullish sentiment on HBAR. The next major resistance is located between $0.0766 and $0.0786, which is approximately 12% to the upside.
Market Analysis by Kaloyan Tosev, Amaltea