Bitcoin (BTCUSD) (3-day/8-hour)
After a week filled with rampant euphoria on social media and Bitcoin flirting with a breakout past the long-held $40k resistance level, we saw strong selling last night as the week came to a close.
Bulls have yet to breakout past our orange “neutral” box on the macro 3D range, with a slight rejection wick, but buyers seem to be stepping in at any slight dip.
On the more zoomed-in 8hr range, we’ve passed and retested our orange “neutral” box, which provides some evidence of further upside ahead. If no candle bodies go below this orange zone, Bears’ last stand should be in the red box from $44-47k.
Ethereum (ETHUSD) (3-day/8-hour)
Ethereum seems to be picking up more steam than Bitcoin, especially over the weekend, seemingly unaffected by the heavy selling we saw in Bitcoin leading into the weekly close.
With NFTs creating a lot of buzz on social media, this could be a catalyst for Ethereum’s relative strength against Bitcoin, potentially leading the way for the greater altcoin markets.
Fundamentals & Correlations
Comparing the total crypto market capitalization(TOTAL) with the Bitcoin dominance chart(BTC.D), we can see that the new money we saw pouring into Bitcoin last week remains, but has been shifting into other crypto assets, with ETH leading the way.
With BTC.D topping just shy of 50% on last week’s upper wick, we could be on the brink of a mini- “altszn” if Bitcoin remains range bound.
The US Dollar Index (DXY) showing some signs of rejection at this marked resistance level, which could result in price markups on all assets if the Dollar continues to weaken against other world currencies.