The crypto ecosystem has been on an uptrend since Uptober. While the majority of crypto investors did not expect a bull leg to come true, the positive sentiment that started around $28K in BTC has been going on.
The most important factor behind the bullish sentiment is the hype on the Bitcoin ETF. In the case that the ETFs are approved, the issuers are going to buy spot BTC from the market to be able to offer an ETF service. Actually, this is what "narrative" of the ETFs but they may not buy spot Bitcoin, too.
If the Bitcoin offered in ETFs cannot be trackable, this story may turn into a black swan in the ecosystem. The BTC wallet addresses and transactions need to be as transparent as possible.
Market's Correction
If a coin is non-stop going up, you may start considering Dollar Cost Averaging to take some profit and cash out. However, if a coin is going up with swings, higher high -> higher low -> another higher high cycle, then there is nothing to worry about.
What we see in Bitcoin and many other coins is that they have found themselves at a local support level that they stay above.
The price of Bitcoin had one of the best technical charts in the uptrend.
As you see, the price is traced back from the 20 - day Moving Average and it is gathering its strength again. So long as the support line of 20 - day is not broken, the uptrend will continue in the crypto ecosystem.
Among the rumors between the crypto influencers, a $48K test is becoming a possible one. Actually, I cannot make any clear decisions when the price is around $40K - $45K because that price range can be one of the harshest battlefields of bulls and bears.
The bullish projection is not impossible. The retest to these levels might be still around the corner. However, I do not expect sharp price actions as we have experienced so far.
Through the end of 2023, we may see some swings between strong support and resistance levels.
Ethereum, on the other hand, is also strong. However, you might have realized that it is under pressure. Although it becomes deflationary and there is more room for Ethereum in all Layer 2 projects, the price does not spike as we wait.
XRP is an unusual crypto project with its own dynamics. In its long term chart, we can clearly see the accumulation around $0.3 - $0.4. The trend line and support levels are pretty strong to keep it up again. The only deep correction may nonly come true if the market makers decide on decreasing the number of the investors who will utilize the growth of the token / project.
Briefly, above $40K in BTC, $2000 in ETH and $0.5 in XRP are interpreted as the fair value of the coins that they should never drop below of. The donwtrend will eventually happen but, maybe, it will not happen before Q2 2024.
As long as the "strong" support lines are not broken, the market will wait for the news of ETFs in the first week of January.
What do you think about the recent retest to the strong support levels?
Share your thoughts about the healthy (?) correction that we are in.
Hive On
Posted Using InLeo Alpha
