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The market has corrected this due to Bitcoin’s failure to cross the $25,000 barrier. Losses in altcoins are far greater than those in Bitcoin, which may be the result of an earlier correction in altcoins.
An Analysis Of Key Market IndicatorsÂ
Michael van de Poppe, a prominent crypto analyst, suggests that the market’s overall trend is upward, as Bitcoin has risen from $16K to $25K in just a few weeks. If Bitcoin breaks through the $25K mark, it could easily blast through 30K and higher. However, Bitcoin’s failure to break through that crucial resistance level suggests that the market may be on the edge of another correction.
Van de Poppe notes that the Nasdaq is showing weakness, making lower highs and lower lows, indicating a potential drop back into the range. The SMP is also turning around, indicating a sustained correction. The dollar index is showing strength, as is the ten-year yield, which is approaching FOMC minutes. If the minutes indicate that the policy will continue, there could be continued strength in the yields.
Consolidation Could Be Essential In The Long RunÂ
The famous expert suggests that Bitcoin needs more consolidation before it can continue rallying. A retest of $22.4k or a correction to $23.6k to $23.2k could be a good entry point. The correction in Bitcoin also provides an opportunity for Altcoins to be bought at a significant discount.
In terms of Altcoins, Van de Poppe suggests a long entry point for Chainlink (LINK) at the $7.25 area, and for Ethereum (ETH) at $1600. He notes that Conflux (CFX) is correcting, and a potential short trigger is around 33.5 cents. Fantom (FTM) is showing some momentum, and he is interested in taking long positions at around 48 cents.
While the correction is healthy for the market, it does not necessarily mean a bear market. As long as the market stays within the entire build-up, there is still a chance for continued upward momentum.
As always, make sure to stay up-to-date with the latest crypto news and analysis, and do your own research before making any investment decisions. Bitcoin was worth $23,999, and Ether was valued at $1,636 at the time this article was written.
