As the crypto market continues to navigate through price fluctuations and market dynamics, the past 48 hours have revealed intriguing developments for Bitcoin. Bulls have made a notable appearance, pushing the price higher in the short-term.
However, the journey for Bitcoin is far from smooth sailing, as it faces a formidable resistance zone that has tempered its upward momentum. What should we expect in the next days? Let’s begin.
BITCOIN
In the last 48 hours BTC bulls have risen to the occasion for the short-term perspective. The price found support from the thinned out area of buying orders. Since then it has been precisely rejected by the First Major Resistance zone.
In the last analysis it was stated that bulls need to react to the weak momentum in order to prevent the price reaching the sub $25 000 area. Since the pump up on Tuesday new buying orders have been detected below the price – $25 800 to $26 550. This is a positive signal that the move up is to be sustained by the bulls.
At the same time, the selling pressure in the First Major Resistance zone have thinned out but have been replaced with more significant ones. This essentially means that we are going to see more sideways movement from BTC and not an exact sharp move up.
Looking to see BTC fall down to the area of the newly added buy orders rather than more upside price action. The overall picture is starting to shift direction, as we are seeing bulls slowly enter the market. BTC is still vulnerable to a trap, where this buying pressure that has appeared exits the market on a move down. That is why it is vital to constantly update the overview of the orders’ placement, something that is done around the clock with every new analysis.
THE DOLLAR INDEX
The Dollar in strong momentum. The price has been nominally supported below current levels with the DXY heading to the next resistance – 103.95.
Looking to see the DXY perform well in the coming weeks. This will have its impact on BTC and it is one of the leading indicators that we are not going to see a parabolic move up in the crypto markets soon.
Remember:
When the Dollar rises, Bitcoin tends to drop and vice versa.
This can be attributed to the fact that Bitcoin is often seen as an alternative to traditional fiat currencies like the US dollar. When the value of the US dollar rises, it makes Bitcoin relatively more expensive for holders of other currencies, leading to a decrease in demand and, subsequently, a drop in its price.
SOLANA
SOL has outperformed other currencies since the trivial pump on BTC. That does not change the current situation on the altcoin, as the area of Selling Pressure is still valid.
Looking to see the price fluctuate between $20.20 and $19.80 in the upcoming two days with no major levels being swept out in that time.
A move of SOL to the zone between $20.40 – $20.60 will open a preferable possibility for a short position. An opportunity for a retracement catch can be in play between $19.88 – $19.74, as new buying orders have appeared there. However, a sharp move to these levels is an indicator of major selling pressure and that would put the retracement play out of the picture.
