This week in the cryptoassets market we have seen a decline from the historical maximum achieved in the previous. As always happens on these occasions, the causes are multiple. From a technical point of view, we had a market in an overbought zone, with a distance to the ATH or historical maximum of less than 15% at many times.
The probability of having values of ATH distance minor than 16 points decreases significantly
In the upper bar graph, which shows us the accumulation of ATH distance historical data, we can see how the probability of having values greater than 83 points decreases significantly, indicating that in these areas we can have technical corrections in the market to alleviate this overbought.
Obviously to this has been added the news that appeared this week regarding liquidations by the miners.
Despite the data and the correction movement, at the time of closing this article we are still in a rebound zone. The preservation of the lower supports, where the weighted price of the options maturing at the end of November is found, would make us remain in a neutral scenario in the short term and more bullish in the medium term.
We are entering in a neutral scenario in a short term
In this regard, the $ 57,000 level is very important. The loss of this zone in Bitcoin could suggest the start of another typology of market
The whales are working
The exchange balances of large operators or whales reflect a significant extraction of stable coins, which could indicate asset sales. Let’s not forget that being in stable coin we could consider it as being in liquidity. That liquidity has been transferred to private wallets.
The movements of large operators have been a constant during this week where we have seen large operations, the most notable being an entry movement of 7,000 million USD in USDT in Kraken, which has been speculated that it could come from the cold wallets of the Exchange . Although that is the case, it is a remarkable flow of capital that we are going to monitor to see what consequences it has
Volatility is something implicit and natural in the cryptocurrency market, so we must act patiently and analyze all the information at our fingertips. Based on these principles, it appears that the market is distributing the newly reached all-time highs.
Although it may seem contradictory, the fact of seeing these declines after seeing such a significant rise could mean a cleaning in the market of the most nervous traders and a subsequent consolidation of levels, which would be very positive for a medium term.
We are seeing an organic an natural distribution movement. The short term traders are liquidated their positions, but the main price levels are intacted