Disclaimer: This material is not financial advice or a call to action. The analysis presented is the private opinion of its author. Incrypted is not responsible for the investment decisions of readers.
This is reported by Business • Media
At the beginning of this week, on December 15, Bitcoin showed a significant decline, dropping to $85,300, with its price even falling below $2,900. At the same time, the vast majority of altcoins also experienced a loss in value; however, a slight recovery in the positions of digital assets was observed later.
Analysis of Bitcoin Dynamics
Cryptology Key analyst Nickkk analyzed the current situation in the Bitcoin market and presented two possible scenarios for future developments. According to him, on the weekly timeframe, the BTC price may test the short zone of the imbalance (FVG). A short model could develop with clearly defined targets for a decline, or this zone could reverse, opening up potential for growth.
“On the daily chart, I will track how the price behaves relative to liquidity, and only after that will I make decisions regarding entering long positions.”
For now, the main area of interest remains short, so short positions take priority. Only after overcoming this zone can the BTC price open the way to the weekly FVG. On local timeframes, a short-term reaction in the long FVG is allowed; however, the analyst still leans towards the short scenario.
Market Overview of Ethereum, Chainlink, and Sui
In the analyst’s opinion, Ethereum currently looks stronger than Bitcoin; however, the further dynamics of ETH will largely depend on the movement of the first cryptocurrency. On the weekly chart, ETH shows resilience, but on the daily timeframe, it is still too early to draw conclusions about further movement — we should wait for the daily candle to close. In the event of testing the short zone of the FVG, the analyst recommends holding short positions until a potential local minimum is removed. If a reversal occurs, a growth scenario can be considered.
Regarding Chainlink (LINK), the price has entered a daily area of interest in the form of an order block and is currently situated between two key zones. The analyst emphasizes the need to wait for the formation of a clear trend to determine the direction of movement. Locally, a long order flow is observed; however, opening long positions is challenging due to proximity to the short zone. It is advisable to wait for either the formation of a short model or a reversal to determine further actions.
As for Sui, the price is currently in a long daily FVG. The analyst advises tracking the further development of events: in the case of a reversal or a new local minimum being set, long positions can be considered. According to him, the optimal scenario would be a transition to a new minimum, after which a long model could be built.
Overall, the analytical review emphasizes the importance of a cautious approach to trading digital assets under current conditions, as well as the necessity to monitor price reactions in key areas of interest to make informed investment decisions.