Bitcoin (BTCUSD) (Daily)
Bitcoin opened the week with heavy selling from the high of $58,000 into a key area for the bulls. Falling into the optimal entry zone for the bullish fibonacci range caused buyers to step in heavily, creating a massive wick and spurring major buying. Bulls need to continue pushing to continue the trend upwards towards $100k. If bulls lose control, we can expect to see support step in around $44,850, $40,650, and $29,900 which would likely lead to a slightly longer accumulation period if the market remains macro-bullish as many expect.
Ethereum (ETHUSD) (Daily)
Similarly, Ethereum followed suit from its high of $2,046 and saw major selling down to the $1,500’s. Support poured in and quickly pushed the price back above the optimal buy zone of $1,608 to $1,701 with low timeframe candles closing back within the bullish channel. If bulls cannot carry the king altcoin upwards, it’s likely the lower support of $1,394 will be tested. However, if they succeed, there’s a high probability we will see it make a stronger push into the $2,000’s.
Fundamentals & Correlations
As we look deeper, we see Bitcoin Dominance (BTC.D) sitting on support at 62.89. Without a major reaction here, it’s unclear where it could go next. While Bitcoin maximalists want to see this support push dominance upwards, many in the market have capital sidelined for altcoins if dominance drops. The US Dollar Currency Index (DXY) remains relatively unchanged from last week. Sitting between support and resistance for multiple weeks, many continue watching to see the direction it takes and the effects it has on world markets.