Bitcoin (BTCUSD) (3-Day/8-hour Comparison)
After beginning last week with a breakout past $50k, Bitcoin remained mostly flat for the week, consolidating under resistance, which is generally thought to be bullish.
Attention seems to be elsewhere, with NFTs dominating the “CryptoTwitter” sphere, and very little talk about Bitcoin’s lackluster price action. One thing to note is that we finally saw a red weekly candle, which was sorely needed to avoid the market getting over-extended. Retesting a bit lower for support in the low $40ks seems plausible, but the longer price hangs out beneath resistance without a major drop, the more bullish it is.
Ethereum (ETHUSD) (3-Day/8-hour Comparison)
Ethereum has been sideways since our last report as well, consolidating just below resistance on our 3-Day chart and within/above it on our 8-hour chart.
Ethereum seems more interesting to watch currently, with some more interesting fundamental factors at play. With the large amount of ETH that is being burned on a daily basis and the NFT fever that is largely hosted on the ETH network, there seems to be a case for a lot of organic demand continuing to rise.
We can also see ETH/BTC pair looking very strong, suggesting ETH could outperform Bitcoin substantially if it can break out past the high from earlier this year.
Fundamentals & Correlations(Weekly Candles)
The two confluence indicators we’ve been watching remain in the same spot as last week. Bitcoin Dominance(BTC.D) is still well below 51%, evidence of more interest in altcoins currently than in BTC. The US Dollar Index (DXY) continues to look weak against other world currencies, which could help continue overall bullish conditions for assets priced in $USD.