The total capitalization of the cryptocurrency market indicates that there is a strong price lateralization between the zone of 312 bn and 347 bn, under the support of the EMA100. This is really what has kept the market in a state of confusion. Just as there is capital inflow, at the same time, there is capital outflow.
It is a not very healthy swing for the market. The scenario for shorter times seems relative and constant, but one of the first correction factors is that: the next few days, many will go to make profits and take money from the market.
But the greatest concern is in the older times, where the real scenario that can happen before the great price movement is seen. A normal and healthy correction so as not to scare many.
It is very clear that weekly the market is risking a lot of capital trying to stay in the resistance of Tekan-Sen, but it is very noticeable that soon we will see capital outflow to seek Kijun-Sen at 290 bn, breaking some main supports and if it reaches If this capital outflow is massive, we will be able to see the market seeking the support of the EMA100 together with the Ichimoku common at 250 bn.
But the worst-case scenario is under sustained resistance at 393 set by Ichimoku on the monthly frame. If we want a scenario in favor of buyers, this resistance must be broken, otherwise, we should look for the crossing of Tekan-Sen with Kinjun-Sen in the 240 as we have already said.
But we know that due to many political and social events, many investors start saving their money in personal coffers than the multiple stocks of the financial markets. The cryptocurrency market is not left out, during the previous months, the great jump only meant about 20% of all the capital that had left after the last bull run of 2017.
We are honest, even the market does not have enough strength to break greater resistance.
By the time this article is being written, again The U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC) have filed charges against crypto derivatives exchange BitMEX and its owner-operators, including co-founder and CEO Arthur Hayes, and it was obvious, the market rationed.
If you are one of the many traders who like to say that you make a lot of money doing short-term operations, unfortunately, at this moment, the game is going against you.
The huge picture that we have drawn means for times less than Bitcoin, a sequence where many can lose money in a short time. We have already noticed that since the previous month, that oscillation between 10k and 11285 seems very misleading.
We don’t really see the significance in relation to the investment interest of large capital at scale. We see rather a child’s play.
Just as we see it in market capitalization, so we see it in Bitcoin. An extreme struggle to keep prices well supported with the EMA100 but with a tendency to seek the 9499 and that vicious circle of accumulation ABCD, within the intraday time.
All indicators point towards a short decision regarding prices. Very specifically, we will be able to see more when the Bollinger bands come together.
But the big problem is not in seeing the great accumulation that exists in Bitcoin within the lesser graphic times. The big challenge that exists is when we move to the weekly answer, where the setting looks like a horror movie.
Many traders have already noticed the crossing of moving averages of the MACD, which is spooky and scary because anything can happen in the next few weeks and much more with that wave 4 gradually developing very close to the coming downtrend line. since 2017.
There is not much to comment on, the trend divergence is clear and opens up a conversation for multiple debates.
Unfortunately, if, in the next few weeks, the EMA21 at 10211 breaks, it is most likely that we will see Bitcoin seek the EMA100 at approximately 8954 next to the crossing of the Ichimoku cloud cluster.
With this monthly close, we see a second candle trending towards a brief price correction looking for the touch of the EMA9 and the 0.6 Fibo at 9784.87.
If the market in the next few months does not gain strength, we will be able to see the same scenario that we had at the beginning of 2020.
Nobody knows, but soon we will be able to see a formation of a new falling wedge for Bitcoin, thus triggering the figure of an “M” for monster. This being the case, the beginning of wave 1 may be invalid, and we would still remain in that wave C, which means active in correction and settlement.
He said that the on-chain indicator suggests a trend reversal when it hits 1. The last time it hit 1 was in March when BTC recovered from a steep correction to $3,600. Kraft said:
“#Bitcoin STH-MVRV Ratio has been above one since April. Currently testing the support line at 1 (indicative for trend reversals) — short term holders are valuing $BTC at its realized price. #Bullish as long as we hold this level.”
Soona Amhaz, general partner at Volt Capital, referred to the address activity of the Bitcoin blockchain to pinpoint a healthy sentiment, saying it indicates substantive user growth. Overall, technical structures point toward short-term weakness and a longer-term accumulation phase.
The uncertainty in the financial markets could intensify the selling pressure on BTC in the foreseeable future, but on-chain metrics depict a healthy, gradual growth rate for the network.