The study aims to analyze the ETH/USD and MATIC/USD pairs, closely linked both by category (Altcoin) and for technical reasons (the former being a Layer 1 blockchain while the latter a Layer 2 blockchain designed to scale the mass adoption of the Ethereum ecosystem). Both appear within a compression triangle, and a breakout could lead to a price increase, closing the gap compared to the movement already made by Bitcoin.
The BTC/USD pair has diligently followed the study by applying the Wyckoff method with an ongoing bull run that has almost reached the price targets (link to the article: www.nishikigoinvestment.com/btc-usd-in-buec-zone/). The news of the applications submitted to the SEC for various spot Bitcoin ETFs by numerous financial groups, including Blackrock, was the catalyst for a movement already present in the numbers.
The ETH/USD and MATIC/USD pairs are now in a similar condition, graphically compressed respectively in a rectangular triangle and in a symmetrical triangle, with its typical 5 movements already developed (figure 1), awaiting a possible breakout that will lead to a price recovery. What will be the catalyst? Just this afternoon, news emerged that BlackRock is planning to submit an Ethereum Spot ETF application to the SEC. It is therefore possible to imagine what the catalyst would be, in line with what has already happened with Bitcoin. In this context, the MATIC/USD pair appears interesting, given the high volatility and the recurrence of recurring patterns as well as its relatively low market capitalization (Figure 2).
The crypto market is now approaching the catalyst event of Bitcoin’s halving, expected in the first half of 2024, and on this expectation, investment banks might have prepared in advance, capitalizing on the biennial bear market (of the four-year crypto cycle due to Bitcoin halvings) for the potential accumulation of their own positions and for the preparation of instruments suitable for the entry of the general public of small savers into the crypto market.
Please note that the information provided is not financial advice. It’s important to conduct thorough research and consider consulting with a financial professional before making any investment decisions.