One trader explained that many altcoins that are in the top 10 for market capitalization suffered an all time low in August 2019, and since then many cryptocurrencies are still at very low prices, although recently the Bitcoin price has been rising and so have the altcoins, which are showing that the market is not dead.
“Even though we are seeing new lows for many altcoins pairs, the weekly close is higher than the previous weeks which ends up being bullish and the new low hit becomes a long-wick. In the next few days/weeks, we are likely to experience a wave-like something we haven’t seen for a while. Remember that the bear market kept going for 2 years+. As the bull cycle develops, we will see higher highs being hit as well as strong bursts at times that push prices really high up,” the trader explained on TradingView.
Bitcoin: the price goes up but it’s better to be cautious.
The trader himself, however, explained that it is necessary to be careful with BTC’s new rises. Volumes appear to be rising due to intraday trading and profit-taking, which means traders are liquidating.
“A huge volume was accumulated from 5 to 7 thousand dollars for Bitcoin . I’m not sure that the necessary volume has been collected, so you can expect some downward movement in the way of intimidation, etc.”. At the current price and above the big players are leading you into a trap. Okay, what’s causing the growth for Bitcoin now? It’s due to intraday trading and liquidation of the positions of traders”, he wrote in his analysis.
Ripple and Ethereum: How are these altcoins behaving?
Speaking about altcoins, the analysis related to XRP and ETH explains that while Ripple is building an ascending triangle and therefore would be in a bullish market phase, on the other hand, ETH is seeing the creation of a bearish wedge, despite the fact that volumes are growing and, within this wedge, prices are rising. This, the analyst explains, makes it difficult to predict how the price of Ethereum will behave but it could be a “bear trap”.
“On the right side, we can see XRP/USD on a smaller time frame, after the large pump throughout all of the crypto space it seems to be forming an ascending triangle. This is usually associated with being a bullish continuation pattern”.