Crypto Market Analysis
In our ecosystem, the direction of the market is determined by the leader, which in the case of cryptocurrencies is Bitcoin (BTC). When $BTC falls, altcoins tend to fall as well, and when BTC rises, altcoins tend to rise too.
To understand the current and future market trends, it is important to analyze the movements of #BTC.
On my 1D chart, I have identified key price levels:
- $25,000
- $31,000
- $39,500
- $48,000
At the $48,000 level, there is an order block, indicating a significant concentration of selling orders at that price. Order blocks are considered as potential levels of support or resistance that can influence future price movements. Traders often observe order blocks to predict market reversals or breakouts.
In the case of the $48,000 order block, we can see several instances of selling pressure from left to right:
- The first one ranges from $48,000 to $32,800.
- The second one ranges from $48,000 to $15,600 and was accelerated by the FTX crash due to their insolvency.
- The third one ranges from $48,000 to $39,500.
Currently, BTC is pumping and is expected to reach the $48,000 level again. If it reaches this price range and forms a chart pattern called a Double Top, it is likely that the price will collapse to around $32,000, in my opinion. I will explain the reasons for this in a separate post.
While it is possible for the $48,000 level to be broken, the probability of this event occurring is very low.
These are my thoughts. I would like to hear yours as well.
