This week was quite an interesting one for traders and investors, both in the Equity markets and Cryptocurrency markets. Bad market sentiment and confusion in the stock market led investors to flee to the cryptocurrency market, where everything is JUST and FAIR. Decentralization was a topic highly discussed ever since the inception of Bitcoin, and it seems like it’s finally starting to get its proper recognition. Will Bitcoin manage to rise back to its previous ATH and successfully breach the 42K area?
Bitcoin Prices are back to Consolidation Mode
In a previous article, and before the GameStop palava even happened, we analyzed the price of Bitcoin and noticed that the price was consolidating between USD 40,000 and USD 31,500 and was nearing the latter delimitation. A previous fakeout occurred bringing BTC prices briefly to USD 28,800 where prices directly recovered back in the consolidation territory. We did also anticipate another fakeout that might bring BTC prices below the USD 30,000 price mark. This did indeed happen, and figure 1 below shows both Fakeouts #1 and #2 occurring, only to send BTC prices inside the consolidation area.
Bitcoin Prices to recover and reach 40k again?
Bitcoin prices were showing weak price-action in the past week. Lack of buying momentum stopped the strong uptrend, and prices took a breather between 30K and 40K, more precisely prices rested around the lower band. Luckily, the Gamestop events helped turn investors’ attention to those decentralized market, helping push prices further.
For next week though, an even stronger buying power should occur in order to push prices, as this push only helped push the momentum back to the consolidation area. It is advisable to wait and plan entries/exit instead of entering the current market.
- If prices push further up towards the upper 40K area, it might signal a bullish sentiment, and a sensible stop-loss would be around 36K
- If prices fail to keep their momentum, we will definitely see Bitcoin prices back to the lower consolidation area, with a potential breakout this time occurring instead of a fakeout
The Cryptocurrency market as a whole
In the past 24 hours, most cryptocurrencies were in the green, with XRP prices shooting through the roof, dragging along XLM its younger sister. This price increase comes after Ripple company shared publicly its preliminary response to the Lawsuit allegations.
BTC dominance is on the decline reaching a low of 62%, confirming the long-awaited ALTCOIN SEASON:
1- Bitcoin (BTC) : – 1.41 %
2- Ether (ETH) : + 0.47 %
3- Tether (USDT) : 0 %
4- Ripple (XRP) : + 54.88 % (surpassing Polkadot)
5- Polkadot (DOT) : + 1.73 %
6- Cardano (ADA) : + 4.35 %
7- Chainlink (LINK) : + 2.25 %
8- Litecoin (LTC): + 0.18 %
9- Bitcoin Cash (BCH) : + 1.95 %
10- Stellar (XLM): + 11.06 % (surpassing Binance Coin)