Cryptocurrencies are slow for the last few days, and the reason is most likely a ranged, sideways price action on stocks while USD is recovering. Also, these ranges may not be broken out soon after Powell’s speech yesterday who highlighted that the next data will be important if more hikes are needed or not. So the market may not make strong moves till we see US CPI on Feb. 14.
Technically, however, trends on cryptos are clear, and I like that they correlate with stocks pretty well. We see ongoing recovery on total market cap, but remember that extended black wave 3 can be done and that complex wave four can take place, so be aware of lower supports. Ideally market will retest the 960-970B before it recovers.
The lower level to watch for is 900B. At the same time, I am looking at the simple chart in Alt caps. It’s a nice ongoing recovery, but if we respect the personality of the trend, then the next long opportunity on altcoins can be after the next setback, similar to the past once since the start of January. So “buy a dip” remains in play here, I think.
I also covered cryptos in our video this week in connected with some technology stocks.