Bitcoin’s price correction last night had a strong effect on altcoin prices and put the crypto market in the red. But is it possible to continue the upward trend?
According to Mihan Blockchain and quoted by CoinDesk, the price of Bitcoin continued its saw movement around $23,000 for the third time in the last four days. After failing to recover the $23,100 level last night, the price of BTC went down and fell to the $22,300 level by 4:30 am Tehran time, but The realized price of long-term holders (LTH Realized Price) Once again, it played the role of support and at the time of writing, the spot price of Bitcoin has recovered to $22,734.
Michael van de Poppe, a well-known crypto market analyst, last night after Bitcoin struggled to reach the $23,100 level and failed to register a higher high. This tweet published:
Bitcoin failed to break through the critical resistance of $23,100,000.
Due to the repetition of the lower high level (Lower High) on the Bitcoin chart, we may test the level of $22,300 before continuing the upward trend.
This level will be an important buying opportunity.
According to Fan de Pope’s tweet, in which the scenario presented in it was accurately realized, it is possible that last night’s price correction is part of the continuation of Bitcoin’s upward trend, and higher price levels will be tested in the coming days. However, altcoins showed a stronger negative reaction in the correction of last night’s price, which may be a sign of a decrease in risk appetite in the market and the weakening of the strength of the upward trend.
The price of Ethereum fell below $1,550 for the first time last week and continued its downward trend down to $1,518. Other altcoins also faced price correction, and the prices of popular memecoins Dogecoin and Shiba fell by more than 7% and 8%, respectively. The price of ADA also decreased by 8%. In these developments, the total value of the crypto market returned to less than 1 trillion dollars and decreased to 966 billion dollars.
The sharper price correction of altcoins compared to Bitcoin can be clearly seen by looking at Bitcoin Dominance. BTC Dominance increased by more than 1% in the last 24 hours to 44.63%.
Matt Weller, head of global research at FOREX.com, commented on the developments of the last three weeks in the market:
The recent price increase was due to “a big squire shorts”. After that we saw a kind of FOMO from traders who thought they would have all of 2023 to buy near the bottom.
Despite all these developments, this week the dominant narrative is still the narrative of deflation, and no new event has seriously changed market sentiments. Important macroeconomic events that the market is waiting for in the coming days, the announcement of the growth rate gross domestic product (GDP) The United States on January 26 (Bahan 6) and Personal Consumption Expenditure Index (PCE) It is on January 27 (Bahman 7).