Bitcoin still looks quite bullish despite the fact that the BTCUSD chart experienced a serious fall on Wednesday. Asset price has fallen by more than 16% or $2100 in dollar equivalent. As a result, the fall was bought off from $11000-11500 and the main cryptoasset began to demonstrate attempts of correction. A sloped price channel was formed in which next price movement can expected to occur. If in the nearest future bear does not drop the quotes below $11,000, a new local uptrend can be expected.
Bitcoin was bought off from a very important zone of $11000-11500. Importance of $11,500 level was decribed in the previous review. The main volume and local interest of market participants is concentrated in the same zone, according to the indicator “Volume profile”.
The mood of retail investors radically changed. On the Bitfinex exchange, the ratio of long and short positions reached a record of 4.8 - BTCUSDLONGS/BTCUSDSHORTS . Retail traders are almost entirely confident in short-term growth, which generally coincides with the technical picture. Another psychological indicator - the index of fear and greed dropped to 33 points (fear) from 83, recorded 2 days earlier. Similar sentiments were observed when Bitcoin dropped down to $ 11,000 on June 5th. Thus, traders again begin to fear that the current zone will not sustain and the decline will continue. Meaning $11,000 level locally is a key level - if it is broken, there will be another panic sale down to $ 9,800.
Altcoins, unlike Bitcoin, continue to lose ground. If you take weekly period (because a week ago BTC was trading around the same area), it is obvius that drop is quite significant. Ethereum decreased by 7.8%, Ripple by 15.2%. Many cryptoactives from the TOP-15 fell by 15-20%. The only exception was the Monero, which did not fall in price, despite of found vulnerability in the code.
The current violation of the correlation between bitcoin and alcoins looks rather artificial, and the growth of altcoins, which many hope for, does not start yet. At the same time, the BTC domination index is approaching 66.5%, after reaching which the rally began at the end of 2017. The first large injections of liquidity into ethereum and ripple should change the current picture by 180 degrees.
Bitcoin was bought off from a very important zone of $11000-11500. Importance of $11,500 level was decribed in the previous review. The main volume and local interest of market participants is concentrated in the same zone, according to the indicator “Volume profile”.
The mood of retail investors radically changed. On the Bitfinex exchange, the ratio of long and short positions reached a record of 4.8 - BTCUSDLONGS/BTCUSDSHORTS . Retail traders are almost entirely confident in short-term growth, which generally coincides with the technical picture. Another psychological indicator - the index of fear and greed dropped to 33 points (fear) from 83, recorded 2 days earlier. Similar sentiments were observed when Bitcoin dropped down to $ 11,000 on June 5th. Thus, traders again begin to fear that the current zone will not sustain and the decline will continue. Meaning $11,000 level locally is a key level - if it is broken, there will be another panic sale down to $ 9,800.
Altcoins, unlike Bitcoin, continue to lose ground. If you take weekly period (because a week ago BTC was trading around the same area), it is obvius that drop is quite significant. Ethereum decreased by 7.8%, Ripple by 15.2%. Many cryptoactives from the TOP-15 fell by 15-20%. The only exception was the Monero, which did not fall in price, despite of found vulnerability in the code.
The current violation of the correlation between bitcoin and alcoins looks rather artificial, and the growth of altcoins, which many hope for, does not start yet. At the same time, the BTC domination index is approaching 66.5%, after reaching which the rally began at the end of 2017. The first large injections of liquidity into ethereum and ripple should change the current picture by 180 degrees.