Bitcoin (BTCUSD) (3-Day/8-hour Comparison)
It has been another interesting packed weekend for Bitcoin, with the breach of the psychological $50k level last night shortly after the weekly open.
With many calling for a new ATH around the corner, and price sitting under resistance on multiple timeframes, proceed with caution.
Things do look quite promising, but with 6 green weekly candles in a row, it is best to not get swept up in the hysteria. We’ve had two other similar periods last year- from March to April and from September to November of 2020, we saw 7 green weekly candles before a correction and new highs. We now have 6 consecutive weeks of green, with many claiming that as soon as $50k broke, $100k is around the corner. While this is certainly possible, if everyone is thinking it, you may want to question it.
While significant, the breach of $50k was met with some heavy resistance, and it seems just as likely that we see Bitcoin cool off for a bit giving Ethereum and altcoins a chance to catch up.
Ethereum (ETHUSD) (3-Day/8-hour Comparison)
Ethereum does seem to have broken some more significant levels on both of the ranges we have been watching. With a retest and breakout past the orange “neutral” box on our 3-day chart, and past the red “danger zone” on our 8hr chart.
Ethereum seems poised for new highs sooner than Bitcoin, and if that happens, the greater altcoin market should enjoy a generous spillover of bullish activity. NFTs remain a hot topic on social media, and Ethereum is currently the most popular network for them to be held on, adding to natural demand for ETH.
Fundamentals & Correlations(Weekly Candles)
Bitcoin Dominance(BTC.D) showing signs of alt-market strength, remaining well below 51%, despite Bitcoin rising in price.
The US Dollar Index (DXY) remains sluggish at resistance, giving a chance for markup in any asset priced in US Dollars.