During yesterday’s live, I looked at the current situation on the charts, pointing out disturbing signals from the markets. Volatility in key assets and geopolitical tensions suggest that as an investor you should prepare for upcoming shocks before a possible return to a sustained upward trend.
Altcoins under pressure and lessons from previous cycles
The current cryptocurrency market clearly favors active investors over passive capital holders. I would like to remind you that taking short-term profits around the previous historical peak, i.e. ATH, at the level of USD 126,000 per Bitcoin was the optimal strategy. Many popular projects recorded drastic declines of several dozen percent from their peaks. Selling pressure on smaller cryptocurrencies is currently at a five-year high. Analysts point out that although well-known networks have strong foundations, excessive expectations and errors in token distribution have led to massive market corrections.
Key macroeconomic data and geopolitics
The crypto market does not operate in a vacuum, and the coming days may bring further challenges. Observers’ attention is focused on key economic readings from the United States, including inflation data and industrial indicators. Additionally, the mood is cooled by the delayed prospect of interest rate cuts by the American central bank.
The situation on traditional financial markets and internationally is also important. Gold returns to the USD 5,000 level and crude oil is gaining strength on the wave of global political tensions. At the same time, the US real estate market is sending mixed signals, which, combined with macroeconomic uncertainty, is creating a challenging environment for risky assets. Volatility in traditional markets very often translates into the behavior of digital investors.
Scenario for Bitcoin and Ethereum
The major cryptocurrency remains in tiring consolidation. Data from yesterday’s analysis suggest that a short-term rebound to around USD 74,000 is possible, but it may only serve as fuel for a deeper decline. Personally, I see a structure on the BTC chart that is confusingly similar to the bottom of the 2022 bear market. I think the final clearing of the market will come by moving down sharply and collecting liquidity from lower levels.
Ethereum shares a similar fate, trading below the $2,000 mark and closely following Bitcoin’s movements. Despite the specter of capitulation, the presence of exchange-traded funds and enormous institutional interest give hope that the possible reconstruction process will last only a few weeks, not months. However, this requires patience and careful risk management during daily trading sessions.
