The recent sideways movements in the market have created some uncertainty among investors. However, there is no reason to panic. What is happening with altcoins?
The recent decline in altcoin values is a typical phenomenon for such trends. The rise in funding rates and increased risk appetite led to a rapid surge that inevitably required correction. The market needs a reboot to determine further movement direction.
Where is Bitcoin headed?
Technical analysis indicates the following key points:
Price: Currently, Bitcoin is trading around $98,800.
Relative Strength Index (RSI): The RSI value is 57, indicating some overbought conditions and the likelihood of a rebound.
Double bearish divergence: This pattern confirms that many investors are taking profits, leading to a short-term correction.
After a slight correction, the price is likely to stabilize within the current range or drop to the $90,000 level (Fibonacci level 0.618).
Moving averages on higher timeframes are holding significant declines at bay, while the divergence between price and RSI indicates potential for a rebound.
The absence of a breakout of key support levels and the maintenance of an uptrend on higher timeframes suggest that we may see a recovery in Bitcoin price to the level of $100,000 and possibly higher.
Positive factors:
Tether issuance: The recent issuance of 1 billion USDT may have a positive impact on the cryptocurrency market.
Macroeconomic data: The published inflation data in the US fell within expectations, which may support market growth.
The probability of a rate cut by the US Federal Reserve on December 18 is nearly 100%.
Despite the recent correction, the long-term outlook for Bitcoin remains positive. It is recommended to maintain long-term positions in Bitcoin and consider buying altcoins at attractive prices.