The cryptocurrency market witnessed a “terrible bloodbath” for altcoins, as described by crypto analyst Sjuul | AltCryptoGems. However, Bitcoin’s (BTC) price action remained relatively stable, prompting questions about the reason behind the altcoin sell-off.
Sjuul’s Explanation
Sjuul explained that the underperformance of altcoins could be attributed to Bitcoin’s strong dominance, which continues to push higher. “As long as we don’t break down from this channel, most alts will underperform Bitcoin,” he stated.
According to Sjuul’s analysis, Bitcoin is still holding the crucial 4-hour exponential moving average (EMA) 200. He acknowledged some weakness, as Bitcoin threatens to lose this important higher time frame trend, which could confirm bear control.
Reclaiming the Uptrend
For bulls to regain control, Sjuul highlighted the need to reclaim the 1-hour EMA 200, a lower time frame trend that has been “chopped out pretty badly” in recent days, diminishing its relevance.
With trends becoming less relevant, Sjuul acknowledged that Bitcoin is not trending and is mainly moving sideways. He emphasized monitoring the ascending triangle pattern, ensuring the lower band holds. “Should this ascending triangle fail to hold, our last line of defense is the macro support level,” he added.
Support and Resistance Levels
Sjuul advised those on the sidelines to consider entering the market only after Bitcoin overcomes the resistance at $72,000 or wait for a visit to the support level at $62,000. The latter aligns with the uptrending channel’s range low, providing a confluence of support.
Bears have been aggressive with their shorts, as evidenced by the substantial liquidity wall around $72,000, where bears placed their stop-loss orders. Significantly, the liquidation cascade lately saw 822 million long positions destroyed, one of the biggest liquidation events in the last six months, second only to early March.
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Show more +Institutional Interest
Despite the market turmoil, the Bitcoin spot exchange-traded fund (ETF) market cap has remained stable at around $60 billion, showing little interest in daily fluctuations from institutions.
Sjuul’s analysis highlights Bitcoin’s resilience amidst altcoin volatility, underscoring the importance of technical analysis and identifying key support and resistance levels for informed trading decisions.
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