Market Overview

BTC remains in a range as it is trapped between two liquidation zones that formed around 65K, 62.5K-62K. This is also the level we have been watching for the past two days. This volatile price action gives altcoins some room to run. More liquidity is forming on the downside, which shows that market momentum is still bullish. People have been expecting a drop last night. Only when one side is completely eliminated will we see a bigger move. Ideally, in order to gain more upside momentum and as a sign of market strength, I would like the upside liquidity to be eliminated.

If this level turns into support, we will see rapid market volatility as it signals to investors that we are in a more risky environment. Crypto assets have lagged behind traditional financial markets in the past few weeks due to uncertainties related to the economy and the Fed's monetary actions. For investors, there is no better sign than BTC changing the HTF structure that funds are rotating and people are speculating on riskier assets. This is especially evident in altcoins given that several altcoin indices are on the verge of breaking out. However, as always, we still need confirmation. I personally don’t like lagging too long below resistance as this indicates weakness. Instead, I prefer a recovery and bid scenario here.