Bitcoin (BTCUSD) (3-day/8-hour)
Bitcoin closed out the week above $35k last night, seemingly out of nowhere. After the close, Asian markets opened with a big jump up in the first 2 hours of the week, topping out just shy of $40k.
This was exciting for most market participants, and so far the semi-breakout has held strong as other world markets begin their trading weeks.
When looking at our two charts, we can see potential trouble spots for bulls in the low $40ks with our orange “neutral” box on the 3D chart, and our red “sell zone” on the more zoomed-in 8hr chart.
As long as bulls can keep candle bodies above the $36k area, more upside seems plausible. We aren’t out of the woods yet though, as this is still a just lower high, and not a confirmed breakout. $25/26k could still be on the table, so proceed with caution.
As always: be prepared for either outcome.
Ethereum (ETHUSD) (3-day/8-hour)
Ethereum is in a similar position relative to these two ranges, a nice reaction off the lows, but not a confirmed breakout. Being back above $2000 is a psychologically reassuring price point, but bulls shouldn’t rest on their laurels until we see a new high.
Fundamentals & Correlations
Comparing the total crypto market capitalization(TOTAL) with the Bitcoin dominance chart(BTC.D), we can see that new money has flowed into the market as a whole, most notably into Bitcoin.
Although the 47% Market share of BTC.D is still indicative of altcoin opportunities, it could quickly leave the 51% line in the sand behind, with BTC stealing the show.
The US Dollar Index (DXY) is still hinting at further strength from $USD against other world currencies, which is another reason to be cautious of this last-minute rally from crypto at the tail end of the week.