Bitcoin (BTCUSD) (1-day)
The market remains relatively unchanged since last week’s market report. We’ve seen a continued low-volume grind downwards into support. With it being a holiday week in many countries, the reduced volume and liquidity is expected. However, we can clearly see Bitcoin holding a key zone for the bulls. Not only does it remain in a higher timeframe “OTE” zone, we’re also seeing bullish divergences up to the 12-hour and daily timeframes. While volume might be lacking, it’s clear that this zone is not for selling!
For bulls to really take control, $53k needs to be conquered. Without that, there’s a moderate chance of us revisiting the lower $40k’s. However, if $53k gets breached, the likelihood of new all-time-highs increases quite a bit!
Ethereum (ETHUSD) (1-day)
Similarly, Ethereum remains relatively unchanged as well. We’re seeing the slow grind downwards into support with no clear signs of bullish reaction. However, we also see bullish divergences across many timeframes as it sits within a higher timeframe “OTE” zone for the bulls.
For bullish uptrend to continue, Ethereum bulls need to close high timeframe candles above the $4,400 to $4,500 zone. Without that, it remains in high risk territory with a chance of seeing low $3k’s.
Fundamentals & Correlations (BTC.D 1-week, US DCI 1-month)
Bitcoin Dominance, like the rest, remains unchanged as it sits at the bottom of a range between 40% and 50% dominance. At this percentage, Bitcoin stands a higher chance of taking back the mic and putting on a show. If Bitcoin shows strength, bullishness of alt coins could suffer temporarily as the king crypto makes a run and dominance quickly pumping to 48% or higher.
With the US Dollar Currency Index remaining in the mid 90’s, we see it tapping resistance and could be due for a cool off and retrace to the 92 support. If this happens, it will provide additional fuel to digital assets like Bitcoin and Ethereum who are sitting on support and revealing bullish divergences.