Does the 4H chart provide answers?
Looking at Bitcoin, the daily chart is rather obvious. We need to hold the 52 000 dollars threshold and the trendline. Everything important can be followed and seen on the 4H chart. I believe that here we can see forming of a bottom, which is very typical of Bitcoin. In general, this is a structure that moves mostly sideways, but every important major movement up is quickly brought back down. Fundamental news is still rather negative, with very small impact of a positive sentiment.
Why are we seeing this type of a bottom forming? Probably due to whales. This type of investors needs this longer bottom formation to accumulate Bitcoin. Their biggest disadvantage is a huge amount of capital that they cannot put into the market all at once.
Having a look directly at the charts, yesterday we saw a first bullish movement in a few days. That however did not end well. Eventhough we have broken several resistances, we were not able to create a higher high, leading us back down. This is not surprising at all, since the market needs to gain strength again. With these movements the whales are also able to liquidate traders almost on daily basis.
Altcoins ready to follow
As always, altcoins mostly follow the movement of Bitcoin. If Bitcoin is stagnating, altcoins could be moving sideways or upwards. However, once Bitcoin goes to correction, it is very probable that all altcoins will follow. In my view, altcoins are forming similar structures as Bitcoins – bottoms.
If we look at the capitalisation of the whole altcoin market, we can see it very clearly. Yesterday we were not able to go above the resistance. Yet, the alt capitalisation is creating higher lows and higher highs, which is a good sign for the future growth. But everything will be still mostly about the movements of the king – Bitcoin.