Cryptocurrencies extends yesterday's caused by the liquidation of short positions and an improvement of market sentiment:
- Market volatility has recently dropped to levels seen last time before the sharp spikes of November 2020. The 'king of cryptocurrencies' remains above $ 20,800 level, the bulls may launch an attack at resistance zone around$ 21,000. Ethereum is performing well and its price approaches $ 1,550 level. Despite the weaker results of Microsoft and Alphabet and subdued opening on Wall Street, cryptocurrencies are performing relatively well, and the dovish decision of the Bank of Canada lifted hopes for the December Fed pivot.
- Short liquidation volumes are at their highest since July 2021, when bearish traders suffered heavy losses. For example, the FTX exchange registered USD 745 million of liquidation according to Coinanalyze data. The total value of liquidations on the stock exchanges reached approximately USD 908 million. Bitcoin futures traders lost $ 468.8 million.
- Among altcoins, Cardano, Solana and Chainlink, which suffered significant losses in recent weeks, are doing great.
Bitcoin, H1 interval. Cryptocurrencies resumed their upward movement after a surprisingly dovish decision of the Bank of Canada, which also helped US indices. The RSI Relative Strength is approaching the overbought zone around 75 pts. The previous 'lower peak' at 80 points could herald an impending correction towards $20 500 level. Source: xStation5
