While many investors believe that another downward trend is over and buying more, one market analyst believes that jumps in Bitcoin and Atrium may fail. He also compared the Shiba Ino chart to the 2018 Ripple chart and said that this token will have a downward trend in the future.
Despite strong upward market trends, one trader says buyers of digital currencies are overly optimistic, according to Daily Hoodel.
An analyst nicknamed Capo told his 254,000 followers on Twitter that while bitcoin performed positively last week, the big digital currency has not yet stabilized above its vital resistance levels.
“As the volume of open interest rate contracts and the funding rate increase, the volume of transactions is declining, indicating that traders are using too much leverage,” Capo said.
Open contracts are those derivative contracts that have not yet been settled. The term futures market capitalization rate also refers to the amount of commission that long-term holders (those who believe prices are rising) and short-term holders (those who believe prices are falling) have to pay to maintain the market. in balance. .
Capo added:
Buyers have made good profits in the last few days. However, is the downtrend invalid? The price trend has gone from $ 45,000 to $ 46,000, but has not yet stabilized above that, and recent pressure on supply and demand in the market has had several downward signs. Although the price and speed of financing have increased, the volume of transactions and open futures contracts has decreased.
Capo also said he was witnessing a downward trend in the global stock market. According to him, the S & P500 index, which often correlates with digital currency markets, seems to be on a downward trend.
Capo says:
The S & P500 also met with strong resistance as stocks traded lower. In my opinion, we have not yet come out of the downward trend. The unfavorable scenario continues.
Looking at the penny market, Capo added that the pricing model created in the chart of some tokens is similar to previous downturns. He compared the upward trend and the correction of Sheiba Ino with the beginning of the downward trend of Ripple in 2018 and said that “this similarity should be carefully considered.”
This popular analyzer also has a negative goal for Atrium. According to Capo, he predicts that if Atrium fails to maintain support for the uptrend line on the chart, it will see a price below $ 1,300, down about 63% from the current point.
At the time of writing, the price of bitcoin has reached about $ 47,370, an increase of 12.5 percent over the past seven days; Atrium, meanwhile, rose 15.5 percent over the same period, and the digital currency is now trading at about $ 3,400.
The publication Analyst warns: Bitcoin and Atrium jumps are very fragile first appeared in Digital Currency.
