During the last 2 days we saw notable moves from the top currencies in the crypto market. At the same time, the gains were quickly erased, as Bitcoin got rejected at a local high level.
The last analysis was specifically stressed on consolidation periods in the markets. What we have seen recently further proves the thesis that these volatile moves are not yet over.
When we will see a reversal and what is next for crypto? Will we be seeing another leg up or the bears will prevail? Let’s see what the charts have to say.
BITCOIN
BTC rose over 3% on Friday and since then Saturday has been bloody. The price found support on the uptrend line again for the 6th time in little over two weeks. It is noteworthy to mention a principle constantly used once again: When a price continuously retests a support or resistance level for a short period it is likely that it will break it.
Touching the uptrend line in a short period is a sign of weakness in the BTC price. Since the pump up we have not seen new major buying orders appear below the price to support it and the ones that were positioned got taken out on the spike down. It is very likely that we will be seeing this type of movement for BTC, as we are approaching a level of a squeeze between selling and buying pressure.
The Area Of Buying Orders is still valid and has not been reached. BTC has formed a double top in the Area Of Consolidation, which is a sign of not enough volume needed to form new highs.
Losing $28 600 will mean more downside for BTC and a probable bounce from The Area Of Buying Orders. Because we are in the weekend we should proceed with caution. Moves in price are usually volatile and can trap traders ahead of next week. Sundays are usually a green day for the crypto markets, so no conclusions should be made about the next move for BTC in the weekends.
SOLANA
SOL gained over 7% on Friday but it is currently trading on a 3.50% loss since Saturday open. The Support Area is still valid and buying SOL between $21.70 – $21.25 is a desirable area for a long play. Losing this level however will drive the price down to where the bulls are defending it – $20.40 – $19.30.
The price did not reach the last major resistance, which shows that bears have the control. The current price of $21.95 is positioned on a short-term support level, which is purely based on momentum.
The price is currently heavily dependant on BTC for its next move. Considering BTC is on the verge of losing its uptrend, SOL is can see lower levels in the next days. Regardless of the current situation, the price still remains a desirable one for a long-term play.
