The buying volume for BTC has been gradually decreasing since Monday, and a liquidity grab movement was observed on Wednesday, followed by a sharp price move. Could this volatility lead to a major breakout or consolidation?
It is well-known that when the Dollar rises, Bitcoin tends to drop, and vice versa. We will analyse the recent movements in the DXY, including its bounce from a support zone and the influence of global trading deals on its price.
What are the potential support and accumulation zones for MATIC & SOLANA? Let’s explore these altcoins and their current market conditions.
BITCOIN
BTC has been gradually losing buying volume since Monday. On Wednesday we saw a rather popular movement that is seen in the markets – a liquidity grab (to purposefully drive the price in a direction in order to fill orders) in the area where buying orders were spread. After that a sharp move followed.
In the last analysis it was indicated that it is highly unlikely that we see a move up from BTC above the First Major Resistance. After that a clear move to the exact top of the resistance area resulted and then a drop down. The area is still valid, although weakened. It is quite expected to see the price move sideways in the zone between $27 000 – $27 600 before seeing a major move to either side.
The Buying Orders Spread area has been touched before the move up, which clearly indicates that the market are open to manipulation. In other circumstances a person might conclude that after the initial minor move downside BTC will continue down. It is only in the vision of the ones that were informed, who knew that there is an area of buying orders.
Currently, the zone has been supported with yet more buying orders in place after the previous ones being executed. This is an indicator that bulls will not be looking forward to seeing the price of BTC move further down. This case will further be supported if more and major orders appear bellow current price to support it.
DOLLAR INDEX
In the past few weeks it was very much highlighted on what to expect further for the DXY. What is the correlation between BTC and the DXY?
When the Dollar rises, Bitcoin tends to drop and vice versa.
As of May 1st:
“The Dollar is looking to gain momentum since falling to a support zone on April 10th. On the day it was indicated that the DXY can expect a bounce because the U.S. will look to strengthen it. The news from Russia making new trading deals made the price fall initially.”
Will be looking to see the DXY halt before any move to either side, because there is major selling pressure above current levels. Regardless of that information, a reason for the slow development of BTC in recent days is due to the DXY.
Seeing a disbalance between both on Wednesday should raise a signal to be aware. This usually means that the move up from BTC is vulnerable to sharp move down as a retracement.
SOLANA
A pinpoint precision in defining the rejection area for SOL in the last analysis. More than 4% move down followed until the spike in price for BTC. That move lead to minor relief in altcoins.
Looking to see SOL move sideways in the coming days. A move up higher than $21.50 is highly unlikely in the current market condition.
There is an opportunity for retracement catch between $20.38 – $20.56 with the plan of entering a long position.
MATIC – UPDATED
The Matic chart has been updated. The price rose with over 6% on Wednesday, which significantly outpaced other currencies.
The price is situated at an Area Of Selling Orders. Before the pump up Matic bounced of a previously indicated support zone. The preferable zone for accumulation is between $0.83 – $0.79 but it is unlikely that we see this area reached in the next 48 hours.
Looking to see the price fall down and reach sub $0.87 levels, as not until $0.85 there are active buying orders on the price. That of course will change with time and that is why it is currently wise to wait for the market to play out.
