In the past 48 hours we have seen a movement predominantly down for the crypto markets.
With the volume being incredibly low, we have not seen a move of any significance for the past 7 days. When we see this type of occurrence there are a few possibilities that might unveil.
Let’s see what the charts have to say.
BITCOIN
BTC has found support in the Weak Support Area that was noted 2 days ago. The zone can be confirmed as a weak one, because it caused a small bounce in the price.
Currently, both buying and selling orders have been narrowed down closer to current price – $27 920.
- A buying order block is placed between $27 800 – $27 600. The orders in it indicate that it can be considered a reasonable place for BTC to bounce.
- Similarly, selling orders have been placed between $28 000 – $28 300. In terms of importance sellers have set a smaller amount of setting orders in comparison to the order block of the bulls.
When we see low volume in the markets and little movement in a price of an asset (“crab walking”) it is likely to see a significant move to either side. This occurrence often can mean that big players are buying or selling the asset but in a way that does not affect the market. With that being said, MicrosStrategy, the company that owns the most amount of BTC, has acquired more of the currency during these past 72 hours.
It is likely that we see a liquidity grab on BTC that traps either the bears or bulls and then a move to the other side. This usually when happens when order blocks get narrated closer to current price.
BTC has failed to support the uptrend that is also a middle line of the parallel channel. Retesting the Weak Support Area looks in favour. Price is also at a critical point where 21MA on a Daily chart is trying to keep the slowing momentum. All zones from the previous chart are still valid.
SOLANA UPDATE
SOL has taken a slight hit in price since being rejected by the important downtrend.
As expected, the price bounced slightly from the Weak Support Area and has eventually broken it to the down levels. If price reaches the area again it can be considered a small resistance.
The Major Support Zone from the last analysis has now flipped to a Consolidation Area. This means that traders are expecting to buy SOL on even lower levels and are changing their buying orders lower.
The support of great importance for SOL is between $18.97 – $18.68. It is worth mentioning that the Consolidation Are can also act as a support zone but a sharp move to the upside is unlikely.
ETHEREUM
ETH has some levels of support and resistance that are worth looking at.
The price is currently trapped by a small selling zone between $1868 – $1888. With the low volume in the market and slowing momentum it is possible that we see a move to a Consolidation area.
Because ETH is a big currency, in terms of market capitalisation, the areas of support/resistance can be wider.
The Consolidation zone for ETH can be estimated between $1804 – $1767. This means that it is likely to see the price move sideways before being able to map out the next direction.
The area between $1707 – $1662 is key for ETH to hold if reached.
Link for BTC chart HERE!