Observing technical analysis for Bitcoin, Ethereum and Solana
Cryptos have bounced back quite swiftly since their rout last week.
Nevertheless, the price action and sentiment around the digital assets class remain weak, looking for a spot to consolidate in peace.
Indeed, when such dramatic outflows occur, even in traditional asset classes such as equities, bonds, or metals, participants take their time before regaining confidence and actually show meaningful buying interest.
A crisis of belief often translates into slow, gradual drifts lower, the time required for participants to get flat, retire algorithms, and, overall, for market sentiment to return to a more neutral level.
Does it mean we won’t see any more flash crashes or value halvings? It is tough to say in such unpredictable times.
What is certain is that the most leveraged classes of investors are backing off, allowing funding spreads to narrow and open interest to return to non-speculative levels, where movement can be more stable.
