Bears & Bulls Face Off

Crypto Compass 49

“If you don't believe it or don't get it, I don't have the time to try to convince you, sorry.” — Satoshi Nakamoto

• As the BTC market navigates the choppy waters around $26k, the Altcoin Signal is back to the frontier; bearish momentum is fading away as altcoins show bullish divergences in their RSIs. After hitting a low of $25.3k yesterday, the bulls have pushed the price back up, although the market remains vulnerable.

• BTC price remained strong above the $25.5k zone. BTC could soon attempt a recovery wave above the $26.5k resistance zone in the near term. If BTC started showing strength, we could see new attempts to shift the season to altcoins.

Figure 1: Altcoin Cycle Signal measures whether the market favors bitcoin versus all altcoins

• Sellers appeared to have lost steam as the selling pressure waned after BTC broke below the $26.5k support level. We are starting to see the first innings of strength in the system, however, there’s a lack of demand to have longs entering the game with strength at $26k to push up the price.

• The price has eventually bounced on the solid support at $25.23k. If the bulls push the price above $26.5K, there could be a relief rally towards the $27k resistance zone. But remember: shorts are under control, so caution first.

Figure 2: Price momentum of BTC. Reading above 0 indicate bullish momentum, and under 0 bearish momentum.