Buying continues in support zones

An anodyne week with no remarkable news. We are seeing how the distribution movement of the important market fall of May continues. Until today, the support zones are holding perfectly, although it is evident that there is a danger of market collapse as we do not move away from these lows clearly.

The market is in a dynamic of indecision. There is significant buying, it is true, when we reach the current lows, but when we see an upward movement with some consistency, the sales do not take long to appear.

The importance of whales

No alt text provided for this image

Analyzing this dynamic is very important to try to understand what is really going on in the market, and in that sense the data is enlightening. We see how in a two-week period in which we have plunged into a major bear market, the major traders have accumulated assets, mainly bitcoin and Ethereum.

This is not a detail that has to go unnoticed. Traders who have a lot of capital in this market are doing the opposite of what smaller investors are doing… nothing new in the history of financial markets

The question you should ask yourself as an investor is: Where do you want to do? like majors? like minors?

Bitcoin has entered a new phase

The examination of the market makes us draw a series of conclusions that lead us to a final point: the market has entered a new phase. 

After this fall, the market context has undergone a radical change that we can see clearly expressed in the bitcoin chart, a bitcoin that has gained more importance with an outstanding increase in dominance as we will see later on

No alt text provided for this image

We have gone from a scenario in which we could threaten the main bearish guideline, originated in the last ATH, to move to a bullish market context, to fall to very important low levels and from there generate a new reference area of more medium or short term. 

The chart is descriptive in this regard and we see that, once again, the FOMC meeting has marked a very important milestone in the evolution of the cryptoasset market.

We could say that, far from thinking otherwise, the Fed has even increased its influence on cryptoassets in recent times.

Evidently, the ballast or influence of monetary policy changes are there, and the cryptoasset market is no stranger to this aspect, as the financial market that it is. I think this is something we should not forget

This new phase of the Bitcoin aims to consolidate once again, this distribution zone in this range of 30,000 and has as a reference to beat the bearish guidelines generated in the area of 40,000 USD, price prior to the meeting of the Fed.

Bitcoin imposes its law

The dominance aspect makes it quite palpable that at the macro level, we must now follow the evolution of the main asset. Not for nothing, dominance levels have exceeded 45% in areas not seen since October 2021, a time when the market was in a quite different bias

No alt text provided for this image

It is undoubtedly the law of the strongest, which has another expression in the derivatives market and its configuration, where we also see a bearish disposition. The putcall ratio of bitcoin and Ethereum shows a wide gap in favor of the former, a sign that the market is in a more conservative position.

No alt text provided for this image

All these factors mean that we see a medium to short term where the market, at best, remains in this distribution zone. So far, the defense of the support zones is strong and consistent. Let’s hope it continues like this and we see strong entries at these levels, because right now they are the last trump card for the bulls. 

In this context it is more important than ever to follow the macro market indicators, because the market is sure to behave as a block, both to initiate an upward or downward movement.