Image downloaded and edited with canva
Where is the Lambo ? Where is the moon ? š I thought we were in alt season and every single crypto coin will follow the leadings of BTC (bitcoin) ?. Some crypto fanatics on x would praise the moments like in a minutes we will soon be in the moon Lol! . I kept saying this same thing, I thought I was loud enough; crypto market ( and other financial markets) is basically controlled by supply and demand dynamics. And if it happens that some factors like government rules and economic changes or what new policies, these things influences the market for short term, after then, the market will resume back to the direction it intended. Let's take some time to simplify things:
The dynamics:
I wonder why people will get into trading the market without trying to understand the principle of supply and demand. The market will always do the same thing, repeat the same circle because this is how the big guys in the market generate the money.
The principle of demand; state that, the higher the price of a product the lower quantity demanded. And theĀ the principle is supplyĀ state that; the higher the price of a product, the more the supply. These are basically what drives this market. And I perceive, this could be the beginning of another long term bear season ( who knows?).
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ALT SEASON SHORT LIVED: ETHER FAILED TO HIT 5K PRICE LEVEL DURING BITCOIN BULL AS XRP KEEPS LOSING VALUE TO SELLS PRESSURE
The possibility of crypto bull continuation is doubted as the market keeps posting weakness and failures to recover recent highs. The effect is much visible on alt coins, Where on several scenarios bitcoin depreciates in price, causing the the alt to drop drastically but when BTC recovers, the alt can't even regain the previous highs. Ethereum was expected to break $4,800 ATH record of 2021 bull market.
However, the price could not cross $4k price level;
Which displays market weakness and lack of buy interest. Xrp on the order hand, had a good bullish phase recording new highs at $3.4
However, as at the time of writing, xrp is priced at $2.38 and I find possibilities perceiving that the price will keep depreciating to $1.15 or lower. Let's say between $1.15 and $0.85. Am not certain on this predictions, so do your own research.
Observing the market critically, you can see that bitcoin had a good surge, but alts where struggling to follow the lead, moreover, if the price of bitcoin depreciates 0.5%, alt will dips almost 25% to 30%. A clear indication of lack of liquidity and weak buy power, which means that we have slowly entered in to the distribution phase and it's necessary to understand this so you can make proper trading decisions.
CONCLUSION
Considering the market posting different variables, I perceive we have entered into another market phase and the price of bitcoin and alt might Keep depreciating until the end of the distribution phase. ( Who knows when that will be ?) So it's important to trade wisely and manage your portfolio. However, things can still change, of course anything can happen. My analysis are personal views and does's suggest any investment advice, it's important to keep making your own research.
Resources:Ā the images above showing the prices of Ethereum and XRP are screen shot from my Binance account.
This article was first published on hive blog.
