Bitcoin [BTC]: The Crypto Reset Is Here.

Michael Pizzino

Market Overview

The market is still waiting for a sentiment reset, with the fear and greed indicator stuck in a greedy state. However, the sentiment is starting to reset, and the next couple of weeks will be crucial in determining the market's direction.

Key Points

  • The exchange volume is dropping off, which is a cause for concern.
  • The spot ETF outflows are indicating a reset in sentiment, with a significant amount of outflows on December 19th.
  • The liquidations are low, which is not a reliable indicator of a market bottom.
  • The short side of the market is heavily favored, with 51.8% of participants shorting.

Bitcoin Analysis

  • Bitcoin is still holding above a crucial trend line on the weekly chart.
  • On the daily chart, Bitcoin is holding above a support zone at around $92,500.
  • A break down below this level could indicate a longer correction, while a bounce back above could indicate a low is in.

Altcoin Analysis

  • The true altcoin market cap (excluding Bitcoin, Ethereum, and stable coins) is showing higher lows, indicating a potential turning point.
  • Ethereum is holding above a major 50% level, but lacks momentum.
  • Solana is holding above previous major tops, but needs to get back on top of its March high to indicate a major low.
  • Pepe is printing consecutive higher lows and is in a interesting position.
  • Dogecoin is still in a downtrend, but a break above the breakdown zone could indicate a stronger position.
  • Cardano is getting close to breaking down from a major support zone, while XRP is holding up relatively well.

Conclusion

The market is still waiting for a sentiment reset, and the next couple of weeks will be crucial in determining the market's direction. Bitcoin and altcoins are showing mixed signals, with some potential turning points and others indicating further correction.