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Market Trends

Will Filecoin Bounce? Key Indicator Points to Yes

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  • Filecoin appears to be on the move toward a key support level, which could signal the potential for a price increase if buying pressure picks up.
  • There has also been a TD Sequential “13” indication, which signals that sellers are exhausted and a reversal could occur.
  • Some investors believe that there will likely be a short-term rising trend but are waiting for stronger bullish momentum to confirm this. 

In a recent post on X (formerly Twitter), crypto analyst Ali (@ali_charts) drew the attention of many Filecoin (FIL) traders and investors. In the post, Ali explains that Filecoin is sitting on the lower side of a trading channel, a strategic price point that functions as support and has the potential to soar upwards if buying activity increases.

What captured the attention of most readers was that alongside Ali’s analysis, a TD Sequential indicator, which is popular for anticipating a trend reversal, also appeared. Many consider this to be a confirming signal of an upcoming minor uptrend.

TD Sequential Indicator Provides Optimistic Outlook

In the TradingView screenshot shared in the post and from the candlestick pattern, we can see the price moving downwards almost to the $2.64 region, which is bounded by a thick black support line. The price touched this level and showed signs of holding above it, which suggests that buyers are starting to help defend this support barrier. 

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Source: X @ali_charts

Another supporting clue is that TD Sequential shows a “buy” signal. This sequential indicator suggests a bullish outlook when it shows “13.” This is because the  indicator typically flashes a “13” after a sequence of candles that suggest exhaustion in an ongoing trend; in this case, the indicator is invoking sentiments that bearish movements might be tapering.

Buyers Reaction Would Control Filecoin’s Possible Rise

According to the overall chart structure, it appears that Filecoin has been ranging, as the price is currently at the lower boundary. It is on the verge of testing this very boundary, which has previously acted as a major bounce point, such as in late April. 

If the trend does repeat and sellers respond to the signal, it would allow Filecoin to surpass expectations and achieve short-term targets. Of course, the market must remain cautious, as additional confirmation is required, such as an increase in volume or a series of green candles that drive the price back to mid-range or upper-channel levels. 

Related Reading | From $2 to $20? XRP’s Historic Moves Hint at Massive Upside

Altcoins Poised for Rally After CNH/USD Bottoms: Analyst

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  • Altcoins are likely to rally soon, after the CNH/USD chart forms a bottom, analyst Michaël van de Poppe says.
  • Historical patterns indicate that Ethereum and altcoins surged after similar lows were seen on CNH/USD.
  • If investor risk appetite returns, an altcoin breakout should be expected after months of stagnation.

Crypto analyst Michaël van de Poppe recently posted why altcoin prices are not moving on X and why this may change soon. Van de Poppe explained that one of the main reasons behind the slack in altcoin markets is that investors are cautious and are refraining from taking risks, instead sticking to the U.S. Dollar.

But van de Poppe notes that something very important could be happening now. He mentioned that in the past, when Ethereum (ETH) and other altcoins had their rallies, everything began after the CNH/USD (the Chinese Yuan against the U.S. Dollar) pair reached its lowest point.

This happened in July 2019. Back then, when CNH/USD bottomed out, the crypto markets, including Ether and altcoins, started surging.

Historical Patterns Suggest Altcoins Set to Surge

Fast forward to now, van de Poppe explains that the CNH versus USD chart has descended to a bottom this month. If history were to repeat itself once again, it might suggest that altcoins are about to reverse the current trend and begin climbing. In effect, he believes that the current low in the CNH/USD might ignite the next altcoin rally.

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Source: X (@CryptoMichNL)

Van de Poppe’s sentiment is based on the idea that if the Chinese Yuan becomes stronger against the Dollar or if it stops weakening, investors might start taking risks again; thus leading to money flowing into cryptocurrencies.

Another crypto analyst with the X handle, BlackPro, also agreed with this view.  He said that if this recent bottom in CNH/USD is indeed a real turning point, then perhaps this is the start of a fresh ‘altseason’, which is a period when altcoins, or cryptocurrencies other than Bitcoin (BTC), outperform the leading cryptocurrency and experience major price increases.

Although nothing in the markets is ever guaranteed, many traders are watching to see if this pattern will hold true again. If the CNH/USD truly has bottomed out with risk appetite returning, it might be a sign for the altcoin rally that has been greatly anticipated after a long and dull period in the altcoin market.

Bitcoin Supply In Profit: CryptoQuant Predict Bull And Bear Market Trends

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Renowned analytical platform CryptoQuant recently shared data regarding Bitcoin Supply in Profit, which would ultimately contribute to understanding the market circumstances. This metric could be defined as the proportion of the current profitably circulating supply of BTC.

In a recent X post, the platform mentioned that using the long-term moving average, the 1,500 DMA, and the standard error ±1SD, CryptoQuant has identified certain patterns in the Bitcoin market, which correspond to an approximate four-year cycle.

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Moreover, Supply in Profit analysis depicts that if the figure crosses the +1 SD band means 85-95%, then it points towards major bull market. However, it was identified that this indicator rarely remains above 90% in the historical periods , let alone during bearish market conditions.

For example, during the 2017 bull market run, the Supply in Profit under consideration went through deep corrections when rising toward the 1,500 DMA. Most of these reductions averaged about -33.4%, -39.6%, and -40%. 

Bitcoin Corrections Mirror Past Trends

Likewise, the 2021 bull market has -31% decline before its peak, during its occurrence in the same year. The Supply in Profit was identified to have some backing from the +0.4 SD level of the 1,500 DMA in these deep corrections.

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A notable -23.4% correction was done in the early days of May in the current cycle and brought the index to a test of +0.4 SD threshold. Another -16% correction recently again brought the indicator to this critical support level again. This cycle pattern is typical of the earlier ones, suggesting that the market could yet be in the bull phase.

CryptoQuant revealed that, relative to the previous period cycles, the now-established bull market phase could last at least two more months. This prediction raises an intriguing question within the Bitcoin community: Will there be another big increase after this correction? If the Supply in Profit falls below the +0.4 SD and the stock returns are close to 1,500 DMA, that is considered to be the start of a bear market.

Therefore, the Bitcoin community continuously awaits for the next market trend that could either recover or may be a start of the bear market. CryptoQuant’s analysis provides a factual outlook which makes the site helpful in dealing with the uncertainty that comes with investing in cryptocurrency.

Supply in Profit as presented by CryptoQuant gives a complete picture of the state of Bitcoin’s market. Thus, given the historical data and adhering to the current trends, investors are closely watching whether Bitcoin continue its bullish behavior or shift towards a bear market.