The market in the last week showed high volatility. Many actors took the opportunity to generate excellent profits, others know that they are still studying very carefully each movement that is being generated daily.
As advice then to start this new week, that one: let’s study, analyze and then see the opportunities. So, as is a matter of course, and on the part of our work team, we want to present our market logic to you for this new week that is starting now.
Feeling Not To Be Trusted
From our point of view, the market is very grateful for the color it is wearing right now. We refer to the green grass. However, we still cannot say if we will continue with this feeling the next few days. Remember, this exact moment the word that may or may not generate panic is “liquidity.”
Exactly. That word for these days can generate some panic. That why? For the simple fact that the futures market works differently and is working to what we had seen in 2017 when Bitcoin was worth more than USD $ 20k. We say that because even if the price continues to break resistance and more capital enters the market, for the last period volatility has been low compared to previous years.
We must then understand one thing. In addition to liquidity and volatility, another very strong variable is now entering the market: institutional interest. We put this so that many understand that at this point we are if some of the institutions that bought contracts decide to sell or generate profits, the correction that we have been talking about in the previous reports could really happen.
Capital Is Not Everything
The positive of the case is that we are almost reaching USD 300 trillion dollars with respect to the market capitalization. Historical facts show that if the market comes to overcome this barrier we can immediately confirm a trend of more capital inflow.
But the “almost” we had said, is the real barrier we have now. For the side of our beloved uses, and in the case that barrier cannot be overcome, there will be no other than made the capital outflow.
That is why we say that capital is not everything in life. In this game there are many variables that always need to be studied.
The Next Stage
Looking very well at the daily Bitcoin chart, it begins to enter the overbought zone. The above is confirmed with the RSI in 72 points, but there is a divergence with the MACD, who currently shows a linear trend without reversal or decline.
The next step for this point would be the re accumulation and then a brief price correction. Remember we have been saying this because of the strong convergence of Wyckoff Theory, from whom we can see exactly the real moment of Bitcoin.
A Decisive Week
While the daily Bitcoin chart shows us that we are finishing the expansion B wave and with a tendency to generate a correction C wave, the weekly chart shows us something extremely interesting.
We are really at a critical point where the price is touching one of the very important resistances for the entire market. The value of USD $10,262 is being targeted by the Ichimoku Cloud.
In positive terms we can have an opening of a candle with the signaling of the pattern of the three white floors, and with that we could test the 50% area of the Fibonacci retraction and very close to the point of USD $11,072.
Otherwise, the word liquidity could dominate the market and with it, the price of Bitcoin will most of all go to find the 61% zone of the Fibonacci retraction line, and at the exact value of USD $9212. Other indicators show a tendency to represent a neutral zone.
One Step At Time
We want to take advantage of this space of conclusions to say a very important idea. The market is really showing positive, but we must be careful. We have seen the activity of telegram channels sending daytrade opportunities without a previous study.
With the above at what point are we going? We want to give you the best advice from our personal experience: with all this latest volatility, it is important to conduct studies that lead to a winning response. The market itself, and at this time, has a higher risk. That why? because at any moment the opposite of what we had planned can happen.
See you in the next story! With love 💛 Rubika Ventures Team!
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Remember, investment in cryptocurrencies or other assets has a moderate risk, so it is important to have a detailed study of the possible scenarios before placing your money at risk.