Although sentiment drives prices in the short-term, fundamentals play a major role in determining long-term price action. However, many times, the price follows fundamentals higher with a lag. The crypto markets have an uncanny ability to surprise analysts by moving opposite to the general perception.
As the year draws to an end, the focus will shift to the events of the next year. Bitcoin’s halving, the United States Presidential election and the United Kingdom’s Brexit, are just a few of the events that might influence crypto prices.
Crypto market data weekly view. Source: Coin360
It is difficult to predict the reaction of the crypto markets to such events. Therefore, as investors, identifying the trend of cryptocurrencies is important. Buying in a downtrend can quickly turn the position into a loss and can be mentally taxing. Many times, if the price continues to decline, investors lose patience and dump positions at the bottom. Therefore, it is best to buy in an uptrend or at least after the prices have bottomed out.
After the recent declines, do any of the major cryptocurrencies show signs of bottoming out? Let’s analyze the top performers of the past seven days to see if we spot any buying opportunities.
With a rise of just above 2% in the past seven days, Huobi Token (HT) has turned out to be the best performer. There was no specific news in the past seven days which supported the price increase. Does it mean that the price has declined to levels that make it attractive for the aggressive bulls? Let’s analyze its chart.
The HT/USDT pair has been trading inside a descending channel since topping out in early August. The moving averages are on the verge of a bearish crossover and the RSI is in negative territory, which indicates that bears are in command.
Currently, the bulls are attempting to defend the 61.80% Fibonacci retracement level of the rally from $0.88 to $5.3506. This shows demand at lower levels. If the buyers can push the price above…