The market scapes from distribution zone

Strong bitcoin trend in support zone. The $45,000 level has pushed the price up in a major way. Several were the data that indicated this possibility, and also that the movement was relatively intense. Just 48 hours ago we were on a Twich broadcast on a channel to which we were invited and we discussed this scenario, based on statistical data that we now describe

  • The price gave signs and signals of consolidation. In the case of bitcoin, it had remained above the levels tested on 12/3 even with increases in volume and activity in the market
  • This was the minimum zone generated last September
  • The distance from the market to its historical maximum indicated that we could see upward movements of around 5% with a very rapid development
No alt text provided for this image

The conclusion is that:

We have seen the market as a round trip figure marked us in this last quarter of 2021

Although this is something that surely did not appear in the scenarios of many operators and traders, it could fall within a certain market logic. The explosive rise at the beginning of the quarter practically forced a profit taking and as a consequence a correction.

A correction that, as we always insist, must be assessed in its proper measure and with the appropriate criteria.

No alt text provided for this image

For this, our graph in logarithmic notation is always very useful, where we can appreciate the true impact of each of the price movements, and what is more important, their proportionality.

Derivatives market scenario

No alt text provided for this image

Now we only have one last expiration in the derivatives market for this 2021. But the market moves and begins to show its cards. In one of these movements we can see a remarkable data such as an important closing of bearish positions as we can see in the graph of ´Short Liquidations´ in its most recent part.

No alt text provided for this image

Short term outlook

This makes us optimistic in the short term with a market leaving this distribution zone of the declines of the last month. With due precautions, I think we should start to position ourselves on the bullish side in the short term.

The market is increasing its volatility, which we can see in our PCTATH indicator as pressure increases on its upper volatility band, although we must bear in mind that we are in a zone of strong resistance. (The 70 points, which means that the entire market is at 30% of its ATH).

This zone always prints strong opposition to the advance of the price, which is usually beaten with a big boost to the upside. The volume data of these last days show us how it is very likely that a large part of the money has not yet entered into operation, despite the price movement of these last hours

No alt text provided for this image

Merry Christmas and happy new year 2.022!

We did not want to close this article without wishing all readers a Merry Christmas and a prosperous 2022. I thank you personally and on behalf of Belobaba for following our daily content posts on the cryptoasset market, and we hope that you will find them helpful and guide to understand the transformation our economy is undergoing.

It will be an exciting year 2022 with important challenges, both for our project and for the cryptoasset market as a whole. On both things you will have timely information through the Belobaba and BitBCN channels