Cryptomarkets - The Present

In the previous post I talked about the past performance of cryptomarkets focusing on Bitcoin. Why we had to talk about this period and why Bitcoin is the King - you can read in details in the original posts. You can find it in the related ideas of this post. Today, let me share my view on cryptomarkets and Bitcoin based on the present timeframe.

After the deep correction which we could see during about 8 months, the markets reached the possible bottom. After that we could see side movements at this zone for around 2 months, with very little opportunites to trade the way we used to trade these markets. It was logical to think that the markets would need some time for consolidation and with fundamental support we would see a new bullish trend.
This price model was workable until yesterday.

Let's focus now on Bitcoin again and look at the heart of this main coin.
The price broke one of the key support levels and we got a very strong bearish candle. What does it mean?
It's simple, Bitcoin was sold in the big volume and the market had the strength to break the 6000.00 level. This fact is not so important as the possible further price action. If there is an interest to Bitcoin, buyers have to take their chance to open new long positions on better levels. And such breakout and falling could be of short term only. But there are no buyers for now, even if the price is better and for the long run these levels look interesting for positional trading. Also there is no fundamental support.

As a result, the market can not move back and continue the sideway movement above above the 6000 key support level. The bottom has been broken and it is not positive news for crypto enthusiasts. Bitcoin will be able to reach another strong support level, at 5000 and bounce, but also it's possible to see the 3000 level. For such a strong market like Bitcoin and for its reputation this would mean very strong pressure. As for other top altcoins and especcially shitcoins, their bright future will be questionable.

We must keep an eye on Bitcoin and use Technical Analysis but the main news will come from Fundamental Analysis in this time. We need strong fundamental support for Bitcoin which will be able to push the market upward. Only based on it we can be sure that the upward movement will be more reliable. We need a strong demand for Bitcoin and it can be provided now only by strong fundamental news.