Many have watched the price of Bitcoin drop 35% from all-time highs in just one month. Justin Chuh, Senior Trader at Wave Financial, shared his vision in Spanish with Cointelegraph of what will happen to BTC and Ether.
Some of the new entrants to the crypto market are trying risk management for the first time. When fundamentals like positive net inflows from BTC into exchanges are combined with the above technical details of lower highs and lows, we can ignore what big egos and influencers are saying and see a relapse is imminent. Explained Chuh.
“But we have to accept that those voices screeching on social networks cannot help and make movements. That is healthy, but I think we all wish that this did not happen.” he added later.
According to this senior trader at Wave Financial, The implied volatility of BTC’s money has again exceeded 120% on the curve, most recently in February when all of crypto was in pricing mode.
Speaking of ETH, Chuh said it is showing signs of weakness after a six-week winning streak.
“Unlike BTC options, ETH options do not focus on downside protection. The most popular contract is still the $ 5,000 call option, and current trading volume is still higher for short-term call options,” he said .
On the other hand, Chuh specified: Support for BTC ranged from $ 44,000 to $ 42,000, as expected. It could be a no man’s land between that area and 39,000 and 36,000. ETH found support at $ 3,200, but demand may fade – retail crypto investors are learning about other functional ecosystems that support DeFi and NFT and are starting to turn. Established hedge funds and institutions, however, venture into DeFi and will likely just trust and use the most stable protocols first, running on Ethereumâ ????.
He concluded by saying, “Most proof-of-stake smart contract platforms and scaling solutions such as ADA, DOT and SOL as well as MATIC performed well and went against the trend.”
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