Bitcoin has been trading in a sideways pattern near the $26,000 mark, driven by weak buying pressure. Previous analyses have been spot on in terms of the most important levels to mark on the charts.
Will we be seeing the reversal? Is that the bottom for the crypto market? Let’s find out.
BITCOIN
BTC has been going sideways exactly around the price of $26 000. Four days ago it was first indicated how important the level is and on Wednesday we saw the result of the weak buying momentum – a drop to the Bulls Defending The Price area.
The price has touched the zone and since then it has been moving with little volume on the lower timeframe. BTC did not even stop at the Small Support area on the wick downwards. When aiming to catch a retracement move, seeing sharp price action should abolish the idea of a trade. Even in the previous analysis it was stated: “It is good to bear in mind that a sharp move down eliminates the possibility of a bounce trade.“
Two days ago it was highlighted that liquidity has appeared on the market. Thus, we saw sizeable price action for the first time since the past 72 hours. Accuracy is a standard. Currently, bulls have buying orders between $24 600 – $24 100 as some of them were activated on the spike down.
Looking to see the price move sideways before going back in the parallel channel. On the move down no major selling orders have been recorded to support the fall, so that is why seeing BTC catching up to $25 300 is more likely in this scenario. Of course, that can change after more orders appear on the market but the current situation is showing a slight reversal to be seen.
It is crucial for BTC to support and go above $25 400 to keep the ever slowing buying momentum. This does not necessarily mean that it will support it, that is why not being able to in the coming 24 hours will bring a major warning sign on the crypto market. The Monthly 50 MA (Green) is positioned below the current price.
SOLANA
SOL lost over 7% on Wednesday. The price supported with a confirmed candle close exactly on the indicated Short-Term Support.
Looking to see the SOL price chase $14.70 but not being able to do so in the short timeframe will indicate further weakness and lack of bulls. The Minor Resistance area was spot on to indicate where exactly bulls have lost strength.
It is very alarming to see lack of any orders sub the $14 price level with the first major orders appearing at $12.80. The price fell of the Monthly 7 MA, which indicates a broken momentum. That can also mean that the next days for SOL will be hectic and in the major perspective a momentum has been lost.
