One of lime and one of sand

The fight in the cryptoassets market has intensified this week. We have seen how the incipient uptrend has failed to break through the initial resistance zones. The market seems to be unprepared to resume the upward path. Even so, we can appreciate how the structure that is being formed is significant from the aspect of being before a figure of change of bias

In this sense, the Bitcoin chart is clear, although we still do not have an effective confirmation of a change in trend. It seems more and more that when this event occurs the market will give very little room for reaction

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We can zoom in on these latest movements to appreciate the detail of the price movement in which it can be seen that the market simply has not acquired the necessary strength to continue advancing. To this we also have to add some worrying news about the regulation of crypto assets in Europe

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Low risk perception

Despite what we may think, the market has not reacted by protecting itself with this week’s movement as indicated by the Crypto Volatility Index, an index that we have already commented on on other occasions

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Ethereum poised for the bounce

The scenario in Ethereum has changed in the last few hours by testing the support zone that could be the prelude to a rebound with some target zones above important resistance zones

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For this scenario to unfold, it is absolutely necessary that we see a significant inflow of volume so that the incoming demand unbalances the market.

Upward bias in derivative settlements

Also for the first time in weeks, we can see how larger liquidations are taking place in short futures positions than in long ones, giving the market a bullish bias. A positive news that we had not seen for a long time and indicates that the operators give a greater risk factor to the bearish positions

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Whales continue to extract capital

Within all this scenario, the whales have moved this week positioning themselves in favor of this change in the market

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We can see how the extractions of exchanges during this week exceed 3.3 billion USD, with a significant quota of BTC

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Maximum caution and moderate optimism

It seems that optimism is prevailing in the market, but at a very slow pace. We have consolidated the $30,000 support zone in a significant way over the last few weeks and on this basis the market can start to build a figure back

We have no guarantee that this will obviously happen. A sufficiently important negative event would be able to break the support zones, but what is also evident is that the current situation is better than a few days ago, and the market disposition is radically different

NOTE: Analysis extracted on the afternoon of 02/03/2022 and subject to sudden market changes. Remember that before investing you always have to do your own research