After the arrival of Bitcoin at $ 58,000, we have seen how the top 10 have begun to correct their prices and professionals begin to withdraw their profits, selling positions.
Since the last Bitcoin spike we have seen how the professionals have liquidated over $ 2 billions in long positions in both counting and futures contracts. Including futures contracts of other cryptocurrencies such as ETH.
In Trading Capital we had mentioned in previous articles that buying Bitcoin and Ethereum at the $ 1800 levels for ETH and $ 55,000 for BTC were risky levels to buy long positions in both currencies.
BTC
ETH
Both assets have already reached their new all-time highs so we can now take these prices as a professional supply zone.
Now come the million dollar questions, will BTC or ETH be able to break their new highs? It is impossible to predict the price, but we can gather information that allows us to speculate about the future of the price.
Currently the bearish sentiment, after the euphoria has begun to take the market, this is something that is verified with the recent accumulation of capital in USDT
Volume increase in the main exchange markets in the last 24H
This tells us that investors are thinking about their safeguarding by migrating their money to a stable coin. When BTC rises, the demand levels in USDT always tend to go down.
Market capitalization in BTC tries to maintain the 800B dollar mark
If there is insufficient professional money on the table for demand, it is likely to sustain capitalization 800B becomes difficult. The recent sale of positions contributes to generating the necessary stage of panic that professionals in favor of the offer need to start selling.
For Ethereum, the market capitalization has peaked at 200B
Which clearly shows that sales for the ETH market have started. Professionals have already joined the bear party and have begun to generate the profit per difference they have been waiting for.
Without a doubt, one of the most interesting projects is the POLKADOT company. Its market capitalization continues to rise despite having found its first high at $ 40B.
Their share price (DOT) has consolidated above the 30 $
Polkadot technology has set the standard within crypto, which has made this company attractive to many large investors.
Many new projects are coming for this new year 2021 in the crypto world. Remember that in decentralized technology the most important thing is innovation and how this project can really contribute something to the market that already exists.
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Alejandro Aristeguieta CEO in Trading Capital. Investment Firm and Financial Analysis.