Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- The $20.4-$20.8 is an space of liquidity.
- The transfer downward to hunt stop-losses might see a reversal towards $22.3 and $23.9.
Ethereum Traditional noticed the decrease timeframe momentum flip to bearish on 5 February, when the worth fell beneath $23.22. ETC additionally retested the identical as resistance on 8 February. As a consequence of this drop, the market construction additionally shifted to a bearish bias.
Practical or not, right here’s ETC’s market cap in BTC’s phrases
Bitcoin sat on a robust degree of assist at $21.6k. The current drop crammed the imbalance on BTC’s value chart. It appeared doubtless that upward momentum can proceed as soon as extra after flushing out late however overeager bulls.
The vary lows stay untested however bearish momentum has weakened
The $20.8 degree has been essential since early January. Ethereum Traditional has traded inside the vary (orange) since 14 January. The vary prolonged from $20 to $23.9, with the mid-point at $21.95. The mid-point has been a short-term vital degree of assist and resistance over the previous month.
How a lot are 1, 10, 100 ETC price?
The market construction of ETC on the 12-hour chart was decisively flipped to bearish when the bulls had been exhausted by the promoting stress on 9 February. Costs slumped sharply beneath the mid-range mark. Since then, a bounce in costs was seen.
The RSI climbed again towards impartial 50, which confirmed the bearish momentum was dropping power. The CMF additionally pulled itself above +0.05, which denoted vital capital movement into the market over the previous couple of days.
A transfer again above the mid-range mark and a subsequent retest generally is a shopping for alternative. Alternatively, a transfer to the vary lows at $20, which can be a psychological assist degree, might see a bounce towards the vary highs.
Lengthy liquidations fueled a transfer decrease and sentiment retains a bearish bias
9 February noticed $1.5 million price of lengthy positions liquidated within the span of 4 hours. This was when the worth slipped from $22 to succeed in the $20.4 mark. The sudden drop alongside the liquidations meant that promoting stress additionally spiked briefly, however halted simply above $20.
Prior to now couple of days, the falling spot CVD has flattened. This prompt the promoting stress might be at an finish, a minimum of briefly.
Nevertheless, the Open Curiosity posed worrying inquiries to the bulls. It has been flat over the previous couple of hours, at the same time as the worth bounced 4.8% from $20.34 to $21.32. This occurred over the weekend.
Therefore, the conclusion was not a short-term consolidation part to reverse the promoting stress. Moderately it might be some calm earlier than one other leg down on the worth charts.