The crypto market is showing weakness and Bitcoin is not behind. Lack of volume and no bulls in sight make traders anticipate the next move.
After a long run of green days we have been seeing panic for the last week. The drop in the Bitcoin price puts questions marks whether this rally up is over or a pullback is in place.
What is next for Bitcoin and will altcoins rip up or have a cascade down? The charts are signalling something. Let’s get it.
BITCOIN
BTC has manoeuvred in price in the last 48 hours with Monday being predominantly in the red. It is an alarming signal for the bulls that BTC has made a wick down below the uptrend on the channel.
This means that we are seeing more selling pressure entering the markets. The pump that was caused by the bounce from the uptrend line and bottom of the crucial for bulls area was not significant and in fact – weak. BTC lacks buying order levels below $26 400 with the closest reasonable area coming between $24 900 – $24 200.
It is likely that we will see the scenario where BTC falls to between $26 700 – $26 500 and goes back up. In this case when reaching the upper parallel channel again that opens the possibility for a great short position, as it is unrealistic to see BTC get back in an uptrend quickly if we fall down.
The massive sell zone that caused the drop from the recent high has started to move its orders. That can be indicated as a positive sign that the local bottom in price is edging closer. It is beneficial for the market sell orders to spread out, as that gives opportunity for the traders to push the price to clear levels. If there is a a big zone with selling orders it is not sensible to open long positions.
LINK FOR THE BITCOIN CHART HERE!
SOLANA
SOL is still holding its price at the Short-Term Support Area. The price has now lost almost all of its gain after the rise from the FTX news.
There is an opportunity for a bounce on SOL on the level around $20.90. Not being able to defend that price means that it is likely that we will see SOL trading at $20.20 – 19.60.
Either way a rise up in the price from the current level will not change the market sentiment, which is bearish. In order to flip bullish on SOL we have to see the price support $22.20 – $22.50 and chase new highs.
Looking forward to see the bulls on SOL defend the price in the sub $20.20 area. That will be a highly desirable place to accumulate on the currency.
MATIC UPDATED
An updated chart on Matic is out and the key levels are mapped out. After taking a big hit during the drop of BTC, Matic has lost over 16% of its price value with a painful downside.
The next major support for Matic is between $0.95 – $0.93. This area is where the bulls will have to try defend the momentum. Setting up longs from these levels can be considered a clever move.
The price is trapped by sell orders along the way up to the most recent resistance, which means that it is not likely to see a sharp increase in Matic before reaching a more major level.
If Matic gets above $1.03 the sentiment can be flipped bullish for the very short-term. Not likely to happen, as new levels have to be swept first.
