The crypto market has seen relative ups and down in the last few days. This kind of choppy movements tends to shake out small traders.
FED announced a hike of 25 BPS in their Interest Rate Decision and that caused volatility in the market.
Bitcoin pumped over 4% after bouncing from the ascending parallel channel but since has not managed to make a second high. What does that mean and are we looking forward to a drop? Let’s get into it.
BITCOIN
The BTC the price bounced from the uptrend line on the channel, which essentially showed short-term momentum to keep the price in a positive trend. It is worth-mentioning that we have not seen pivotal volume going in the market. What does that mean exactly?
It means that we are situated in a consolidation period for the crypto market. Basically, the market goes two ways – either up or down. In the time between the moves there are consolidation periods. They are usually choppy and people tend to lose their positions to the market makers. A move to one side may bring the sentiment of a potential higher move, however there are two important levels to keep in mind.
In order to see a significant price action on BTC we have to take a look at $31 000 and and $26 700 as crucial levels. Any move in between the area will be choppy. Many traders tend to fool themselves by missing a move on a specific currency only to enter at the highs. That is why any bigger trade positions are preferred to stay out of the market until BTC plays out either way.
Currently, an Area Of Buying Orders has been placed on BTC between $28 150 – $27 700. The odds of getting to these area are higher that seeing a pump to $30 000. The range could be played with the intention of catching a bounce in price.
In order to see a short-term upside BTC bulls have to pump the price above $29 300. However, the most recent major resistance is located at $30 000 and that makes potential long moves in that range not worthwhile.
SOLANA
The price of SOL bounced after reaching the Short-Term Support Area again only to lose almost all the gain in 24 hours.
Not much has changed on the sentiment on SOL – there is still support at $21.25 from buying orders. This means that there is a potential play in the making, where we reach that level for a target of $22.30 (over 5% gain).
Long-term SOL bulls are still defending the price. The current state on SOL is significantly dependant on BTC and no major move can be indicated at that point of time.
