After the cryptocurrency had a successful advance campaign in recent weeks, the prices have stabilized at 3-month highs. Analysts bring analytics with positive prospects for cryptocurrency, check it out.
The recent Bitcoin (BTC) rally has caught many players in the cryptocurrency market by surprise. But even though it was a move without the market expecting such strength in the move, many have been able to spot a move of nearly 40% in the last 15 days. This is even with the macroeconomic uncertainty surrounding global investors and all the fallout from the war between Russia and Ukraine, which every day involves more countries.
At 7 am on Wednesday (25th), BTC was trading at $22,600, showing a decrease of about 1.2% over the past 24 hours. Ethereum (ETH), the second largest cryptocurrency in the market, was simultaneously trading at $1,544 with a decrease of 4.4% over the past 24 hours. In terms of the altcoin market, the losses were even bigger, with Cardano (ADA), Dogecoin (DOGE), Polygon (MATIC) and Solana (SOL) in focus, all of which delivered a 5% drop in the coin’s value in the last 24 hours.
But a BTC correction is what many crypto market players are anticipating right now. But the big doubt hanging in the air right now is about the scale of the fall of this correction, and this is due to the strength with which BTC broke the resistance that was seen as important in the past 15 days. Many analysts give market dynamics as a justification for this recent large increase, including the liquidation of a “large short position” which helped the market gain more strength to search for current levels.
The loss of strength in the cryptocurrency market over the past 48 hours also shows us a sign that trading in the cryptocurrency market is not yet back with the strength that everyone expected. Another factor that was decisive for Bitcoin losing its purchasing power was the recent sessions of declines that appeared in both the Nasdaq and the S&P 500 indices, reflecting the up-and-down season in the US. One of the factors that represents a working consensus in the market is the fact that the next move of the S&P 500 will determine whether BTC will decline more aggressively or whether the market will continue its upward movement. (See PivotChart).
Most investors seem to be using their stablecoins to position themselves in cryptocurrencies. In the Cryptocap analysis, we see that stablecoins represent gains of 144% and 203% in USDT and USDC respectively, which is a sign of liquidation of positions in cryptocurrencies.
Now that liquidity is once again dedicated to cryptocurrencies, we can see one of the major changes, increased interest in altcoins and especially in Bitcoin, which has already increased their dominance to almost 6% in the first 25 days of the year. What I am saying is that the dominance of stablecoins in the market is decreasing while the dominance of trusted cryptocurrencies like BTC is increasing – which is an excellent sign.
But make no mistake, these are just the first signs of the year, no fuss! Looking back over the past year, stablecoins experienced a significant drop in dominance last year, in mid-July, August, October and November. It is interesting to note which coins have received this allocation “stream”.
The good news is that the bitcoin dominance increase, which added to the 5% dominance in 2022, is already at 12% as of 2022 + 25 days of 2023.
Little has changed on the scene. In both the traditional market and cryptocurrency, there is little news. The risk market is now pricing in recession, leaving the issue of inflation behind in light of recent economic readings. But it is important to remember that this is a time of low growth and possibly low volatility, which makes it ideal for taking a large position without too much heat. Was this the fund’s strategy?
Risk market expectations are low at the moment, without much scenario but a lot of speculation. As the year progresses, we’ll be able to get a better perspective of where the economies are heading and how funds will position themselves in cheap assets. (See full review).
DOT is breaking long-term LTB after experiencing a price reaction in the POC for the August-December 2020 session, note that this area remained price-reactive.
But now it’s easy to think this way since it actually happened, however, I’m going to leave a May 11, 2022 study where the 4.39 band was already drawn on my screen, waiting for price to react.
These charted areas were interactive, some more, some less, but if you see the price hitting a certain area and consider it important, you can act more objectively. (See thoughts on Polkadot).
Today we see the monthly chart with the falling wedge broken. We haven’t closed the month yet, but the monthly buy candle is about to engulf the sell candle. 50 EMA (Exponential Moving Average) is about to get touched. We are correcting as mentioned in the previous chart, but it is healthy.
My view is bullish and depending on the close we could easily clear 25k and get to 32k. (Learn more about Bitcoin).
Disclaimer: The reviews provided here are studies only. They are not investment, buy or sell recommendations, and do not reflect the opinion of the media outlet in which they are published. These studies target people with knowledge and experience in the financial market.
Our authors: Samuel Paz, Gabriel Voth, Leandro Sander, and Hydra View.