Hello, traders!
Starting from $59600 after Elon Musk's tweet, the cryptocurrency market followed the "eco-friendly" trend. Unfortunately, the trend turned out to be descending.
Further, news from China contributed to the trend. First, the introduction of restrictions on operations with cryptocurrencies. Then news about the ban on "not eco-friendly mining".
The sales were stopped by the buyers' control zone between the levels of $31000 - $37800.
At the moment, buyers are making an attempt to pass the local resistance at $37800 and bring the price back above the main uptrend line.
In the visible trading volume, we can see the $37800 - $47200 zone, where the trading volume is the smallest. This is the area where we should expect to see trading in the coming weeks.
The sellers' control zone is located between the levels of $41600 and $47200. In case the price reaches this zone, we might see a second reaction from the sellers.
In case the price goes above $39800, there may be a price squeeze between the sellers' and buyers' control zones, and the two trend lines: downward and upward.
After that, the exit to the stronger trend will follow.
The situation in the market is extremely unstable. Take care of your deposits and do not forget about risk management
Good luck and watch out for the market
P.S. This is an educational analysis that shall not be considered as financial advice
Starting from $59600 after Elon Musk's tweet, the cryptocurrency market followed the "eco-friendly" trend. Unfortunately, the trend turned out to be descending.
Further, news from China contributed to the trend. First, the introduction of restrictions on operations with cryptocurrencies. Then news about the ban on "not eco-friendly mining".
The sales were stopped by the buyers' control zone between the levels of $31000 - $37800.
At the moment, buyers are making an attempt to pass the local resistance at $37800 and bring the price back above the main uptrend line.
In the visible trading volume, we can see the $37800 - $47200 zone, where the trading volume is the smallest. This is the area where we should expect to see trading in the coming weeks.
The sellers' control zone is located between the levels of $41600 and $47200. In case the price reaches this zone, we might see a second reaction from the sellers.
In case the price goes above $39800, there may be a price squeeze between the sellers' and buyers' control zones, and the two trend lines: downward and upward.
After that, the exit to the stronger trend will follow.
The situation in the market is extremely unstable. Take care of your deposits and do not forget about risk management
Good luck and watch out for the market
P.S. This is an educational analysis that shall not be considered as financial advice