1. Bitcoin (BTC) and select altcoins have risen above stiff overhead resistance levels, signaling that the bottoming process may have begun.
2. Glassnode data suggests that the foundation for a macro bottom in Bitcoin may be in place and the number of Ether (ETH) sharks has risen by 3,000 since November 22.
3. Traders should keep a close eye on the price action as a sequence of higher highs and higher lows may indicate a bullish sentiment.
The cryptocurrency market has been in the middle of a prolonged bear market since the beginning of 2018. Bitcoin and other altcoins have been stuck in a strict trading range, with the bears pushing the prices down and the bulls unable to take them higher. However, it appears that the market may be turning a corner as Bitcoin and select altcoins have risen above stiff overhead resistance levels, signaling that the bottoming process may have begun.
Glassnode data suggests that the foundation for a macro bottom in Bitcoin may be in place. The on-chain analytics firm tweeted on Jan. 12 that “13% of the Circulating Supply” returned to profit when Bitcoin rallied to $18,200. This suggests a large phase of accumulation took place in the $16,500 to $18,200 range.
Along with Bitcoin, Ether (ETH) is also witnessing signs of accumulation. The number of Ether sharks, holding between 100 and 10,000 Ether, has risen by 3,000 since November 22, according to Santiment data. This indicates that the whales may be accumulating Ether at lower levels and are likely to take the price higher when the market heats up.
Traders should keep a close eye on the price action as a sequence of higher highs and higher lows may indicate a bullish sentiment. If the buyers can sustain the price above the overhead resistance levels, it may trigger a new uptrend. However, if the buyers fail to push the price higher, the bears may take control of the market and push the prices lower again.
It is important for traders to keep an eye on the top-10 cryptocurrencies to find out whether the market is showing signs of starting a new uptrend. Bitcoin (BTC), Ether (ETH), Binance Coin (BNB), XRP, Cardano (ADA), Dogecoin (DOGE), Matic Network (MATIC), Polkadot (DOT), Litecoin (LTC), and Uniswap (UNI) are the top-10 cryptocurrencies by market capitalization and traders should monitor the price action of these coins closely to identify any potential trends.
At the time of writing, Bitcoin and select altcoins have risen above stiff overhead resistance levels, signaling that the bottoming process may have begun. However, traders should remain cautious as the market is still volatile and may swing either way in the short-term. It is important to keep a close watch on the price action of the top-10 cryptocurrencies to identify any potential trends.