Market Analysis: Profit Taking and Searching for New Entry Points
The current situation in the cryptocurrency market is characterized by a consolidation phase following the recent rally. We are observing a classic scenario of profit-taking by major players, which is leading to a local decrease in volatility. Major altcoins are correcting within 3-5% of their local highs, which is a healthy sign for the medium-term upward trend.
The Bitcoin dominance index (BTC.D) continues to remain at 52.3%, indicating sustained interest in the first cryptocurrency as a safe-haven asset. However, if we look at trading volumes, we see a gradual shift towards high-cap tokens from the DeFi and Layer-2 solution sectors. This suggests that "smart money" has already started moving into assets that could show the greatest growth in the next phase of the cycle.
The key support level for Bitcoin is currently at $67,800. A break below this level on low volume could lead to a false downward move, followed by a quick rebound. Conversely, a confident break above the resistance at $69,500 will open the path to testing the $72,000-73,000 zone. I recommend paying attention to on-chain metrics: the number of active addresses on the Ethereum network has increased by 7% over the last 24 hours, which is a bullish signal for the ecosystem.
From a fundamental analysis perspective, we are on the verge of important macroeconomic events. The expected release of US inflation data could act as a catalyst for a sharp move. In a positive scenario, we will see a renewed inflow of liquidity into risky assets, including cryptocurrencies.
My expert conclusion: The current correction is not a trend reversal, but a necessary pause for position accumulation. Investors with a horizon of 3 to 6 months should consider drawdowns of 5-10% as an opportunity to enter quality projects with strong fundamental metrics. However, I advise caution and recommend not using leverage at this time, as the market is extremely sensitive to external news.