Directionless trading environment and low spot trading liquidity for Bitcoin and Ethereum.
The current trading environment lacks direction, leading to impatience among market participants. Traders are compelled to chase after pumps in lesser-known altcoins like LOOM, CREAM, and SXP due to the lack of opportunities. Meanwhile, Bitcoin (BTC) and Ethereum (ETH) are experiencing a significant decline in spot trading liquidity, reaching levels not seen in years.
Long-term hodlers’ resilience and Bitcoin’s price hovering above $26,000.
Despite the market doldrums, long-term hodlers remain unfazed and continue to hold their Bitcoin. They believe in the future value of their coins and are not easily swayed by short-term profit-taking. Bitcoin’s price hovers above $26,000, and there is a need to defend the support level to prevent a potential flash drop towards $25,000. The impact of breaching the critical support level is uncertain, as it could potentially lead to further declines towards $22,000 or even $20,000.
Importance of defending support levels, resistance levels to overcome, and the need for a buy signal to build momentum.
To resume the uptrend, it is crucial for Bitcoin to maintain support at $26,000 and the lower ascending trendline. However, there are resistance levels to overcome, such as the confluence resistance formed by the 50-day Exponential Moving Average (EMA) and the 100-day EMA around $26,500. Additionally, the 200-day EMA at $26,600 could also pose a challenge. Traders are closely monitoring the Moving Average Convergence Divergence (MACD) for a buy signal, which could contribute to building momentum. Until Bitcoin surpasses $27,500, it remains vulnerable to a bearish grip and struggles to validate a longer uptrend.