An analysis TC Crypto shared with Cointelegraph highlights that despite Bitcoin (BTC) rallying in January, the asset is still within the “seller’s price range,” i.e. The downtrend in the crypto market remains intact and it is still too early to signal the end of the bear market.
In light of this, the company, which was accurate in pointing out the possibility of a BTC rally in January, says it is not ruling it out Further declines to $18k, and only a break to the $25k level, followed by buying strength, could negate a bearish move.
“If this materializes, the next important point to watch is the $25,000 price range. The eventual pullback will provide an opportunity for investors who did not take advantage of the buy zone when the asset was trading in the $16,000 range,” he highlighted.
The company notes that during this week, there was a clear improvement in macroeconomic conditions. After benign inflation data and weak figures for US economies, Signaling a possible recession, an increase of 25 basis points at the next Fed meeting became consensual.
this feeling A positive situation with the macroeconomic scenario could have been the main catalyst for the recent rally with investor appetite Hazardous Assets have been refurbished. However, the speed and magnitude of the upward move has caused more than 97.5% of the short-term buyers/scalpers to become profitable.
According to TC, this means that the market price was well above the average entry price for investors. So, according to the analysis, V.I At such times, profit-taking is expected (and normal).
“However, in BTC bull cycles, it is normal for the market to experience this dynamic, and it may take months for realizations to happen. In fact, when we look at the profits made, it is clear that this movement has not started yet but it is something to watch.”
4 cryptocurrencies to watch this week
Given the current state of the cryptocurrency market, with bulls undecided on Bitcoin’s rally and bears eyeing a resumption to $18,000, the company notes that investors should also watch for movement in Ethereum (ETH) which is technically slightly higher than BTC. But it may also decline in the short term.
“ETH has shown a breakout of the structure on the daily chart, forming a very strong buy area in the $1,500 range. Initially, this area is well defended, and the expectation is that the asset will seek targets in the $1,800 range. A sell scenario will only materialize if It lost the area of $1,500. In this case, we might have a correction to reach $1,200,” he says.
For the broad altcoin market, TC highlights 4 cryptocurrencies investors should watch as they could surprise all week.
The first of these is the FTX Token (FTT), cryptocurrency from the bankrupt FTX exchange. TC notes that in a recent interview, the new CEO of FTX announced the possibility of restarting brokerage activities. With that, the FTT token rose from the ashes.
In second place is Aave (AAVE), a secured loan platform that recently launched V3 and, according to the developers, has been bringing major technological innovations since the inception of the project.
In third place is Fantom (FTM), which announced a fund to fund projects in its ecosystem, funded by 10% of transaction fees on the network. As the listing closes, TC refers to Stargate Finance (STG) token, which is up more than 40% in a single day after posting on its governance forum that the “family office” had come close to buying the equivalent of $2 million in a token via OTC trade.
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