Altcoin Arbitrum (ARB) has witnessed a significant development recently. Bitcoin (BTC) experienced a pullback after falling below $28,000. ARB’s decline found temporary relief in a key consolidation area around $0.87. This combination of factors in the cryptocurrency market is noteworthy. It also gives ARB an opportunity to rise depending on BTC’s price performance.
Analyzing Arbitrum ARB’s latest move
When BTC reached $28k, Arbitrum ARB made additional gains. However, as BTC subsequently suffered losses, ARB became susceptible to selling pressure. ARB fell over 10%, falling into the confluence zone at $0.85.
This latest price rejection occurred precisely at the overhead barrier and daily bullish order block (OB) located between $0.9329 and $0.9985 (red). However, the pullback found support in an important area of convergence. This area includes the previous breakout level of $0.87 formed during the extended rally in late September. Additionally, there is a dynamic 50 Moving Average (EMA) represented in yellow. This includes a price imbalance for Arbitrum ranging from $0.84 to $0.88 (white).
Monitor market sentiment
Therefore, the situation will become clear for Arbitrum if BTC maintains its stability and avoids further losses. ARB will find support in this merger area. It will potentially lead to a recovery. The next upside targets for ARB are $0.916 and the barrier zone between $0.9329 and $0.9985 (red). Achieving the second goal will result in an 8% gain for buyers. However, if ARB breaks below the accumulation area, it will invalidate the uptrend.
Despite the small decline in the last few days, capital inflows into the Arbitrum ARB market have remained positive. Confirming the buyers’ influence will depend on the Relative Strength Index (RSI) making a strong recovery around the 50 mark.
Long positions and BTC effect
It should be noted that the upward trend carries some risk. Especially considering the deterrence of long positions observed at the time of writing. Coinglass data reveals that long positions on Arbitrum ARB exceeded $50 thousand. On the other hand, when we look at cryptokoin.com, short positions remained below 20 thousand dollars.
However, if BTC exhibits bullish behavior, market sentiment will shift in favor of the bulls. Therefore, it is necessary to closely monitor BTC’s movements. It is also crucial for risk management and optimizing trade setups in the Arbitrum market.
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