Crypto analyst Miles Deutscher observes that altcoins are forming a flag pattern on lower time frames while maintaining a bullish reversal trend through higher lows. What this means is that altcoins are experiencing short-term price fluctuations within a narrow range, but the overall trend suggests they are preparing for a potential upward surge.
However, unlike Bitcoin, altcoins have not yet broken above their channel high or previous local high. A full-scale breakout seems likely, potentially post-election, but short-term pullbacks are expected. Over the next two weeks, traders should brace for volatility, avoid leverage, and watch out for false signals.
Crypto Market Cap at a Crucial Point
The total crypto market cap, excluding Bitcoin and Ethereum, is approaching a critical juncture as it nears the apex of a symmetrical triangle within a descending channel. Resistance is between $630 billion and $650 billion, where a breakout could signal a bullish reversal for altcoins.
However, failure to surpass this resistance might lead to further downside pressure. Volume confirmation will be crucial, as it will dictate whether momentum shifts upwards or deeper losses ensue.
Tether (USDT) Shows Declining Interest
Tether (USDT) is trading at $0.999856 with a 24-hour volume of $79.9 billion. Despite its price stability, USDT derivatives data reveals declining interest, with volume down by 7.60% and open interest slipping 1.44%.
Short liquidations are dominating at $690.55, indicating losses for bears, while balanced long/short ratios across major exchanges like Binance and OKX suggest market indecision. The derivatives market hints at consolidation, pointing toward a potential breakout. Traders are on edge, anticipating notable moves that could impact USDT positions.
Binance Coin (BNB) Presents Mixed Signals
Binance Coin (BNB) is trading at $596.70, with a 24-hour volume of $1.82 billion. Derivatives data reflects a cautious market, with futures volume increasing by 0.99%, while open interest has decreased by 3.21%.
Long/short ratios lean slightly bullish on platforms like Binance and OKX, but options volume has plummeted 57.06%, signaling lower expectations of volatility. Liquidations have totaled $596.69K over the past 24 hours, affecting longs slightly more than shorts. Traders should monitor this phase closely, as BNB may break out or break down soon.
Solana (SOL) Volatility Increases
Solana (SOL) is valued at $173.86, with a 24-hour trading volume of $3.28 billion. Although it has experienced a 4.39% price drop, derivatives data suggests mixed signals. Trading volume has dropped by 10.44%, and open interest has declined by 3.78%, indicating lower market participation.
However, long/short ratios on exchanges like Binance and OKX suggest bullish sentiment, with top traders favoring long positions. Liquidations have reached $9.17 million, mainly impacting long positions ($7.04 million). This indicates substantial losses for bulls, highlighting increased volatility. A potential breakout is possible as traders adjust to shifting momentum.
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