As geopolitical crises continue to emerge, causing negative effects on the risk market, cryptocurrencies remain unaffected. Analysts are using technical analysis to project the future of the main cryptocurrency, but opinions on whether it will rise or fall are divergent. Let’s see what the TradingView analysts think.
Isa BR believes that the BTCUSD chart is currently in a downward movement after its initial attempt to break its upward structure was rejected. They believe that this price drop was a new attempt to capture liquidity within the discount region, possibly paving the way for another attempt to break the upward structure. Isa BR emphasizes that the longer and more frequent the price attempts to break a turning point level, the weaker that level becomes, bringing us closer to a structure break. They suggest that we may see the cryptocurrency reach new highs this week as part of a final exhaustion movement before a possible devaluation of the asset.
Crypto Costa Coin analyzes the AAVE/USDT weekly chart and identifies a breakout pattern, suggesting that the price is currently in a contraction phase that will likely be followed by an expansion. On the daily chart, the price is in a narrow upward channel, with three consecutive downward bars followed by a resume or pause in the upward movement. However, these three upward pulls may signal the first possibility of a sideways period on the daily chart. Additionally, the renewal of the previous low may indicate a possible change in structure, suggesting selling opportunities. The 60-minute chart shows a formation of a “wedge bottom” that has already fulfilled the premise of two upward legs and generated a new “wedge,” this time a “wedge top.” This resulted in a lower double top. In the same period, there is also a “selling setup” based on the MM20 average. However, there has not been a close above the 61.8% Fibonacci level of the last downward leg. On the 15-minute chart, there is also a “selling setup” based on the gap of the average. The formation of the “wedge top” can also be identified. The possibility of two downward legs for this wedge will occur if there is a renewal of the minimum of the marked inflection point. This technical analysis is based on Al Brooks’ approaches and classical technical analysis.
Mazolaa analyzes the asset’s movement from 2023, noting a consistent upward movement consisting of 5 impulsive waves. However, starting in July, a corrective movement in three parts, known as ABC, began. The first part of this corrective movement was wave A, consisting of 5 corrective waves. Mazolaa suggests that the correction is not yet complete and that we are currently in wave B, which has not reached its termination in their analysis. This means that there may be a subsequent wave C, according to Elliott’s theory, which could result in a significant drop in prices, aiming to reach a range of approximately $18,000 to $19,000. Mazolaa also identifies a Head and Shoulders (H&S) pattern, a reversal chart pattern. The target of this pattern coincides with the mentioned zones, which are the 50% and 61% retracement levels from the previous high. They point out that the next quarter promises to be crucial due to the Bitcoin Halving in April 2024 and the US presidential elections in November. This analysis is based on the Presidential Theory and can be studied by those interested in furthering their knowledge in this area.
In addition, the dominance of the USDT is currently presenting a continuation pattern on the weekly chart, suggesting a possible drop in Bitcoin and altcoin prices. This could be attributed to adverse scenarios in which investors seek greater security and increase the dollarization. During these moments, investors may prefer to hold their positions in USDT (Tether), a cryptocurrency designed to be anchored to the US dollar, rather than hold more volatile assets such as Bitcoin and other altcoins. Therefore, the increase in USDT dominance can indicate that investors are moving towards more stable assets in search of security amidst an uncertain or volatile economic scenario. This analysis might be relevant for those who wish to understand market trends and make informed investment decisions.
It’s important to note that the analyses presented here are for informational purposes only and should not be considered investment recommendations, nor do they reflect the opinions of the media outlet in which they are being disclosed. These studies are intended for individuals with knowledge and experience in the financial market.
Overall, in the midst of geopolitical crises, analysts continue to observe the behavior of cryptocurrencies through technical analysis, offering their insights on potential future trends.