During the last 48 hours we saw Bitcoin dropping down to the desired levels and bouncing back, as no change in the price has happened.
Tuesday seems a green day for the markets but Bitcoin is yet to make a major move to one side. Which one you may ask? The charts may have something to say.
BITCOIN
The plan for BTC was executed perfectly and the price bounced of the 21-day MA. A big congratulations to the traders that followed, the idea for the move was set up over four days ago.
BTC dropped almost 3.5% on Monday only to recover with over 4% on Tuesday. The significant bounce was caused by bulls trying to sustain momentum and the uptrend.
There is a major selling order block between $31 00 – $32 500. The current price is seemingly “trapped” with selling pressure above it and except major volatility kicks in, BTC tends to find new recent lows.
BTC bulls have set orders between $28 200 – $27 200. This major distance between buying and selling orders is bearish for BTC and it means that bulls are weakened.
The current BTC price has once again reached the Consolidation area. We emphasised that consolidation areas are ones that tend to be reached numerous times before a bigger move in the price.
All these factors set the sentiment on BTC bearish. The next target for BTC will have to be around the area of $28 200, however we need to see price action before establishing new positions.
SOLANA
SOL has been influenced heavily by the FTX news in the past week. The price soared above important levels.
Currently, the price has been moving mostly sideways for the 4 days. The volatility levels for SOL are high and moves to either side can be in great sizes.
The bulls on SOL have set buying orders between $23.90 – $23.60. However, it is worth mentioning that this zone is surprisingly thin, although saturated.
It is unreasonable to see SOL above $25.80 before a move down. The selling pressure is high and it is situated between $25.80 – $27.20.
As of now, it seems like a wise move to see SOL play out rather than shorting it, because the traders that have missed the pump can be expected to defend the price at unexpected levels.
