Altcoins
Indicator Does Not Reveal Direct Increase for Altcoins; Higher Volatility for XRP
As the week begins, analysts are expecting volatility. Uncertainty in the news cycle, especially regarding the recent announcement by the US President, is adding to the market volatility. Blockchain Backer host addressed his latest analysis and looked at the price chart of Bitcoin and the broader altcoin market, providing a snapshot of the current landscape.
Analysts and even Blockchain supporters explained that Bitcoin and other cryptocurrencies are at levels where sellers are typically selling rather than buying, adding to the market tension. According to him, Bitcoin is currently at a crucial 702 Fibonacci retracement level, a point often discussed as a decisive level where markets either expand or decline. The current situation calls for close monitoring of any catalysts that could push the market beyond these retracement levels or cause a pullback.
Meanwhile, the altcoin market has shown a lot of activity, with the Russell 2000 reaching its 786 retracement level last week before pausing mid-week. This pattern mirrors what we have seen with Ethereum and XRP.
According to the analyst, a key factor to watch is the Russell 2000, which has not yet entered expansion, a critical indicator for potential growth in the cryptocurrency market. For XRP, it is retracing from last week’s decline to the 786 Fibonacci retracement level, signaling possible continued volatility. Bitcoin has also returned to its retracement levels within the current range. Historically, such scenarios do not lead to a direct increase; instead, more fluctuations are typically seen.
There is an ongoing debate about whether the Russell needs to reach escape velocity for a major shift in the cryptocurrency market. So far, this has not been seen. Market volatility is evident this morning, with the Russell and Dow falling into negative territory while the NASDAQ is rising. Ultimately, the next 24 hours are crucial for both the market and the broader geopolitical landscape.