First of all I'm looking at volumes.
We have seen the highest one-hour volume overthe past 30 days during that sell-off on Sunday.
This is quite significant as it happened overthe weekend where the volume is quite light.
Looking at the source of the volumewe see Bitfinex is the leader.
These events not only happen in the cryptomarket, they also happen in traditional markets especially in emerging markets.
There we also see big spikes or sell-offsin currencies or assets.
This can happen when a big trading accountis putting a position on and then either getting liquidated, then it gets ugly, or is tryingto get out of the position in profits, but the market can't handle the volume, and itstill tanks or spikes like we see in cryptos.
Let's look at our technical analysis.
We have the BTC dollar chart4 hours prepared for you.
We added some indicators like the time volumebars, which are the horizontal bars, and the price volume bars, which arethe vertical ones.
Additionally we have theIchimoku Cloud on our chart.
Let me quickly step youthrough our Ichimoku setup.
First of all you have three moving averageswhich are making the cloud.
The first one is the base linewhich is in blue.
Then you have the slow moving averagewhich is in red.
And you have the fast moving average in green.
Looking at the sell-off on Sunday you cansee that we went straight through the base line which would have been first support.
But we stopped at the $3,750-$3,800 levelwhich comes in right at the upper end of the Ichimoku Cloud.
Additionally it comes with quite high volumeon the price volume bars.
So for us, for the next few trading days thisis quite a significant support level.
The big picture level which will determineif we stay in a bullish setup, as we are right now – green cloud, or if we turn into a bearishone – is to $3,650-$3,700 level.
This is the lower end of the cloud and itconverges with our accumulation zone.
If we break through thatthe bullish scenario is invalid.
Now let's look at our rotation report.
Here we don't see any changes in our call.
We still overweight altcoins versus Bitcoin.
MACDs in Bitcoin have not turned bullish yet,they're still bearish.
Where the MACDs on the2 to 10 ranking altcoins are bullish, and the MACDs on the 11 to 50ranking altcoins are neutral to bullish.
Sorry to disappoint, unfortunately, I didn'tsee any specific catalyst that we could point to.
That was quite a drop, but I don't see anyreal outstanding reason on the fundamental side nor on the technical side for it.
This chart just kind of shows all of the toptraded coins on one single chart.
And what we'll notice here is that it wassome of the altcoins actually, specifically the DApp coins – Ethereum, EOS and NEO,that led the decline.
So NEO is this green line here.
We could see also NEO is this green line here.
We can see also Ethereum and EOS.
EOS was the biggest decliner.
So what we're seeing and this is kind of afundamental change in mindset in a lot of the crypto world and we'll notice that thereis becoming a greater divide between Bitcoin and the altcoin markets.
So, in this case, we can see that the altcoinswere the ones that actually dragged Bitcoin down.
So if we put the moves into context a littlebit, so actually here we can see that the declines of November,the bottoming out in December.
January was kind of this downward staircase.
We can see so from the start of February wegot that surge on February 8th and then another one last weekend.
And then on Saturdaywe had a spike up above $4,000.
So the declines that we had on Sunday, actually most of that declinewas just reversing Saturday's gains.
So we can see this kind of upward staircase.
And the fact that we're holding now at around$3,800 is an incredibly positive sign from technical viewpoint.
Cautiously optimistic, I mean, people wantto be bullish in this market, they recognize that we are 80%, 90% from the all time highs.
A lot of clients are starting to nibble atthese, especially the bigger clients are starting to nibble at these prices and starting toaccumulate in their accounts.
But obviously because crypto is high risk,people want to do that with a very small percentage of their overall equity.
What we can say is that we're right now atthe tail end of a bear market.
It is possible that the market can continuedownward from here.
But I believe that it's more likely that we'vealready found the bottom at around $3,000.
We do see that trend of institutional playersentering the market, we do see that trend especially with some of the futures contract.
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