Expecting to See a Sensational BreakoutColin Baseman
Most of the crypto analysts cannot believe the opinion of those who support pessimistic points of view. They know and admit that there are participants who might feel bored with the cryptocurrency. On the other hand, the price current level of the crypto we witness might become a very good beginning for a great breakout in the nearest future.
As we can see, the price seems currently to be consolidating below nine thousand three hundred USD. However, we should bear in mind that this sort of trend is not necessarily bearish – experts think that the crypto market will soon see a great breakout and the process is already starting.
The price has been holding between eight thousand six hundred USD and ten thousand five hundred USD since May. The 2-months’ sideway move initiated another trend – the market began heating up and, as a result, altcoins attracted many traders’ attention.
More than that, the crypto community is always discussing whether the crypto’s price is in the bull territory or its location is bearish. Here are a few charts that can help participants to get a better understanding of the situation.
Many specialists admit that the crypto is likely to require support. It would need to be beyond the level of eight thousand six hundred USD. The level now is rather critical and needs to keep its position above at the eight thousand five hundred and fifty USD and eight thousand seven hundred and fifty USD frame.
BTC is regarded by many as a major uptrend and all this has lasted since the crash that ocured almost four months ago. Both lows, as well as highs, are relatively higher and this is what classifies any uptrend. The latest low is at the eight thousand five hundred and fifty USD and eight thousand seven hundred and fifty USD territory.
This frame is plays a significant role since many participants use these factors whenever they need to perform the placement. Traders say the price has been steadily retracting. It has also been trying to consolidate and that’s why the volume is of more importance.
Indications of a Possible New Move
The consolidation brought a decrease in the volume. This proves the market is not in the move promising no new trends. If there were a move, we could expect to see ten thousand five hundred USD or eight thousand five hundred USD – either of these two breakouts. We can see a similar event a year and a half ago when the consolidation period was around three thousand five hundred USD and four thousand USD. Analysts claim they expect a significant move soon. Study the charts of 2019 and you’ll see that the price moved inside a relatively restricted area.
This is of utmost importance since it demonstrated what typically occurs during a sideways period that lasts longer than usual. We can now realize why the stage we currently witness is classified in this way. The volume during that period last year drained away steadily. The breakout and volume happened almost simultaneously – this means a lot to both shorters and traders alike.
A sudden one-thousand-USD candle was the result of the chain reaction. The figures have been fluctuating in this area for a few months. At the same time, the breakout is phenomenal and promises a visibly bigger move.
Something similar happens with many altcoins. Traders saw that some haven’t left an accumulation area. For instance, this applies to ZIL – it surged for one thousand percent after breaking out of the range.
Even though timeframes for the crypto can be small, crucial levels are a high probability. They become the support between eight thousand eight hundred USD and nine thousand USD whereas the resistance remains at nine thousand three hundred USD – breaking out this level would lead to upward continuation.
The diagram illustrates a structure that is clearly range-bound. Support, according to specialists, must hold for the bulls between eight thousand nine hundred and nine thousand USD. Levels that go through multiple testing lose strength and turn weaker. Finally, a renewed test would impact the resistance. All these factors indicate there could be a breakout. Placement of the crypto back inside the range the market previously saw is another option.
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