Crypto Engine is a crypto trading tool for investing in the crypto market with an %88 average win rate on trades and is the #1 trading software for crypto traders from all around the globe in 2022. Try it For FREE Today.
The situation in the market is quite worrying to many people who have open market positions. While usually traders move the market up and down regularly, any congregation of orders with similar stop loss and take profit commands usually suggests that the market will start going down at some point in the future due to the sheer volume of orders with stop losses amassed at certain levels. The $18K — $19K is a bad sign.
Bitcoin breached through $20K this Monday
Many optimists are saying that this sudden Bull Rush is a good indicator that BTC is a steady performer, especially considering that the token managed to outperform NASDAQ which was one of the metrics that we used to measure the strength and resilience of BTC during this whole crypto winter. The current state of the global economy allows us to suggest that cryptocurrencies should be compared against national indices for analytical purposes.
The breach of the $20K resistance level that started forming over the last week is welcomed by many as a strong indicator that the asset has legs to jump higher and stabilize over $20K or $21K support lines, but it can be just a brief period of market uncertainty with Bulls pushing while they can. With more people buying at this level form a very dangerous situation down below.
With more people opening long market positions at $21K, a critical mass of stop-loss orders can form near the $18K line meaning that a whole lot of orders will be triggered to close when the price reaches that mark causing even more selloffs and massive downward movements. The accumulation of orders with even lower stop losses under the $17K line can be devastating.
What will happen next in the crypto market?
The sad thing is that no one can tell you the future. The breach may be a strong signal that the market is going up at least for a week or two which is enough to stabilize. However, it can be a short-lived period of optimism that will lead to a dramatic market crash.
Altcoin Directory is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site (namely Branded Content Posts) is paid content that is not written by our authors and the views expressed do not reflect the views of this website. Any disputes you may have with brands or companies mentioned in our content will need to be taken care of directly with the specific brands and companies. The responsibility of our readers who may click links in our content and ultimately sign up for that product or service is their own. Cryptocurrencies, NFTs and Crypto Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.
