- Crypto investors are selling altcoins to take advantage of the ranging crypto market.
- Many traders are selling altcoins at their resistance levels and buying them back at the next support.
- The ongoing selloffs of some altcoins is a profit-taking exercise by digital assets investors.
Crypto investors are selling altcoins to take advantage of the ranging crypto market, according to John Kyle from the Crypto Banter YouTube channel. With Bitcoin and cryptocurrencies moving sideways, many investors are selling altcoins at their resistance levels and buying them back at the next support.
Kyle used the Bitcoin Moving Average Convergence Divergence (MACD) indicator to explain the developing trend reversal in the cryptocurrency market. According to Kyle, there is a developing MACD histogram signal. He noted that the histogram is turning green on the Bitcoin monthly chart, and at the same time, a bullish moving average crossover is establishing itself.
The Crypto YouTube analyst identified a notable resistance on the monthly Bitcoin chart, which is gradually flipping into support. He acknowledged that as a momentum-building move for the pioneer cryptocurrency. A charting signal that will install significant confidence among digital assets investors when it eventually materializes.
Kyle also used the Bollinger bands to show that the Bitcoin price trades close to a support region. He predicts the zone would provide an opportunity for the price to bounce. The two significant levels marked by Bitcoin’s monthly Bollinger bands signal are the $28,474 and the $25,653 Bitcoin price levels.
Kyle showed a developing bullish trend for Bitcoin and other cryptocurrencies using multiple indicators. However, he spotted the ongoing selloffs of some altcoins as a profit-taking exercise by digital assets investors. He explained how traders make profits by exploring support and resistance levels during trend reversals in crypto.
Kyle revealed how opportunities exist in sideways trending markets, with traders repeating alternative buying and selling procedures around a specific price region. According to Kyle, that is how many traders explore opportunities in the market until a substantive trend is established.
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