We had updated the market in the morning and mentioned the golden cross on the 4-hour frame and that we were waiting for confirmation, and thank God it was confirmed (as in the pictures below before and after), then continue reading below
We wondered whether Bitcoin would rise at the expense of alternative currencies by withdrawing their liquidity in its favor, or whether it would rise with new liquidity. To find out, we will see some details:
First: We have to monitor the acquisition of Bitcoin during the period of its price increase,
We find that Bitcoin's acquisition during its price rise did not rise or fall, but rather traded sideways!! This is a preliminary indicator that there is new liquidity.
Second: We monitor the liquidity of all digital currencies, including Bitcoin, and it is called TOTAL.
We find that it has risen during the same period, and this is evidence that the rise in Bitcoin is due to the entry of new liquidity, which is a very good indicator suggesting the return of confidence to the markets.
To make sure that cryptocurrencies have not lost any of their liquidity with the rise of Bitcoin, we monitor the liquidity of all cryptocurrencies except Bitcoin, which is called TOTAL2.
We find that it did not decrease, but rather increased, and thus our concerns that we mentioned in the first update this morning have dissipated, and that Bitcoin has risen with new liquidity and has not affected the rest of the currencies.
This will lead us to a new question: when will we start seeing the long-awaited phase of digital currencies that begins with the wealth distribution process that we have talked about a lot, in which the market maker trades Bitcoin with alternative currency pairs to increase his quantities of Bitcoin, which leads to price increases in currencies. This usually happens with Bitcoin maintaining its price range while decreasing its acquisition.
We have to talk here about an important and new topic that we did not mention before, which is (Bearish Divergence), which is the rise and reaching new peaks or approaching them with a decrease in the RSI indicator and its remaining at lower levels. Then this will be an indication of the beginning of the end of the rise of Bitcoin and the beginning of the reversal of the upward trend and the beginning of the stage of wealth distribution led by Ethereum and watching a strong rise in alternative currencies.
Follow up first hand and you will not fail to read the market. If you are more interested, just review the previous posts and articles and you will benefit from them.
