TradingView column: Cryptocurrencies start the year with optimism

After cryptocurrencies have had a successful breakthrough campaign in recent weeks, prices hold at the highs of the last 3 months. Analysts bring analyzes with positive prospects for cryptocurrencies, check it out.

Samuel Paz

The latest highs Bitcoin (BTC) took many cryptocurrency market players by surprise. But even though it was a movement without the market expecting such strength in the movement, many managed to surf the movement of almost 40% in the last 15 days. This even with the macroeconomic uncertainties about global investors and all the repercussions of the war between Russia and Ukraine, which every day involves more countries.

At 7 am this Wednesday (25), the BTC it was trading at $22,600, down approximately 1.2% over the last 24 hours. THE Ethereum (ETH), the second-largest cryptocurrency on the market, at the same time was trading at $1,544 with a 4.4% drop over the past 24 hours. With regard to the altcoins market, losses were even greater, with emphasis on Cardano (ADA), dogecoin (DOGE), Polygon (MATIC) and solana (SOL), all presenting a devaluation greater than 5% in the last 24 hours.

But a correction of BTC is something that is being expected by many players in the crypto market right now. But the big doubt that hangs in the air at the moment is about the size of the fall of this correction, due to the force with which the BTC broke resistance that were seen as important in these last 15 days. Many analysts present as justification for That last major increase in the dynamics of the market, including the liquidation of a “large short position” that helped the market to have more strength to seek the current levels.

The loss of strength in the crypto market in the last 48 hours also shows us a sign that trading in the crypto market has not yet returned with the strength everyone expected. Another factor that was decisive for the BTC losing its purchasing power was the last sessions of declines presented in both the Nasdaq and the S&P 500 , reflecting the boom and bust season in the United States. A factor that is practically unanimous in the market is the factor of the next movement of the S&P 500 be crucial to know whether the BTC will pull back stronger or if the market will continue its bullish move. (See PivotChart).

Gabriel Fauth

It seems that most investors are using their stablecoins to position themselves in cryptocurrencies. In Cryptocap’s analysis we see that stablecoins represent a gain of 144% and 203% on USDT and USDC respectively, sign of liquidation of positions in cryptocurrencies.

Now That liquidity is once again allocated to cryptocurrencies, and we can see one of the main changes, the increased interest in altcoins and especially in Bitcoin , already increasing its dominance to almost 6% in the first 25 days of the year. What I am trying to say is that the dominance of stablecoins in the market is waning while that of trusted cryptocurrencies like BTC is increasing—an excellent sign.

But make no mistake, it’s just the first signs of the year, no fuss! Looking back over the past year, stablecoins had two significant declines in dominance last year, in mid-July-August and October-November. It is interesting to observe which currencies received this “stream” of allocation.

The good news is the increasing dominance of Bitcoin which added to the dominance of 5% in 2022, is already hitting 12% counting 2022 + 25 days of 2023.

Little has changed on the scene. Both in the traditional market and in cryptos, there is little news. The risk market is now pricing in the recession, leaving the topic of inflation behind given the latest economic readings. But it’s important to remember that this is the time of low growth and perhaps low volatility, perfect for taking a big position without too much heat. He would be That fund strategy?

The expectation for the risk market is low at the moment, without much scenario but a lot of speculation. As the year progresses, we will be able to have a better perspective on the direction of economies and how funds will position themselves in cheap assets. (See full review).

Leandro Sander

DOT is breaking the long-term LTB after suffering price reaction in the POC of a session between August and December 2020 see that That zone remained reactive for prices.

But now it’s easy to think like that since it already happened, however, here I’m going to leave a study done on May 11, 2022 where the 4.39 range was already plotted on my screen, waiting for a price reaction.

These plotted regions were reactive, some more, some less, but if you see the price reaching a certain region and consider it important, you can operate more objectively. (See ideas about Polkadot).

HydraView

Today we see the monthly chart with a bearish wedge being broken. We haven’t closed the month yet, but the monthly buy candle is short of engulfing the sell candle. THE EMA 50 (exponential moving average) is about to be touched. We are having a correction as we mentioned in the previous chart, but it is something healthy.

My view is bullish and depending on the closing, we can easily surpass the 25k and reach 32k. (See more about Bitcoin).

Disclaimer: The analyzes presented here are studies only. They are not investment, buy or sell recommendations, nor do they reflect the opinion of the media vehicle in which they are being published. These studies are aimed at people with knowledge and experience in the financial market.

Our Authors: Samuel Paz, Gabriel Fauth, Leandro Sander and HydraView.