While trading on Wall Street is closed today due to the Thanksgiving holiday, Bitcoin is trading down a modest 0.5%, although it remains above the $37,000 barrier. Much better against the consolidating BTC are the smaller cryptocurrencies. They are the ones to which, during a sideways trend, usually some capital moves from the consolidating Bitcoin after strong increases, and this time is no different. More than 17% gains are being recorded by SushiSwap, whose CEO recently proposed a 'new tokenomics' about which the market is expected to learn much more on November 25. Until then, the market may play out the 'buy rumors, sell the news' scenario, popular among the highly speculative cryptocurrency market. Among other things, the new model for Sushi aims for lower 'dilution' of new token issuances and technological modifications to make it competitive, especially against rival Uniswap.
Bitcoin chart (M30 interval)
Looking at the price of Bitcoin itself, on the M30 interval, we see that the largest of the cryptocurrencies is now potentially in a bearish Wyckoff distribution pattern. Supply has triggered three times after failed rallies to $38,000, putting the brakes on the high-volume rally, and potentially. A key zone to stop eventually downward pressure may be $35,000, where we see the 23.6 Fibonacci retracement of the upward wave from October, and potentially a key location for the entire Wyckoff distribution. A drop below this level could potentially herald a sell-off and trigger the liquidation of long positions. On the other hand, rally above $38,000 may signal that the distribution failed with opening way to psychologically important $40,000 resistance.
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Source: xStation5
SUSHI (H4 interval)
SUSHI's gains have slowed at the $1.26 level, which coincides with the previous local peak, from November. If the bulls manage to break above this level, a potential breakout range could be around $1.57, which would simultaneously test the vicinity of the annual maxima at $1.60, from January/February 2023.
Source: xStation5
