Bitcoin (BTCUSD) (1-day)
Not much has changed since last week’s report. We see bitcoin volatility remaining high while sentiment remains low. Interestingly enough, zooming out to the 1-day chart shows us that the store-of-value asset isn’t quite as bearish as one’s Twitter feed might have you believe. We can see bullish Fibonacci ranges intact for continuation upwards.
With that said, there’s a plethora of lower timeframe bear signals that should be noted. There remains a strong possibility that the range breaks downwards from here and bears won’t get their swing short from mid $55,000’s. Until the range breaks one direction or another, the patient trader will be most successful in these conditions.
Ethereum (ETHUSD) (1-day)
Zooming out on the Ethereum chart shows the asset also remains relatively unchanged as well. It continues to crab around the month-long range with no clear confirmation of direction. Similarly to Bitcoin, there’s a mix of both bullish and bearish signals depending on the timeframe and data.
Interestingly, it continues to sit right at bullish OTE for a potential moonshot to $5,300. However, if Bitcoin breaks down from its own range, this asset will follow suit, and likely see a higher percentage drop in the process.
Fundamentals & Correlations
As we take a look at other markets and data like Bitcoin Dominance and the US Dollar Currency Index, we can gather a better understanding of the current state of BTC and ETH markets.
BTC dominance remains in the mid-’40s after its freefall to the low 40’s last month. While it’s recovered slightly, it remains rather stagnant and is not stealing much of the overall crypto market share. Zooming in on lower timeframes shows a potential push upwards, which would only make conditions worse for alts, but it’s still too soon to draw any conclusions.
The US Dollar Currency Index is actually showing strong market activity since last week’s report. We saw the DXY pump off its local lows and is in the process of a potential breakout upwards. As always, this type of upwards breakout typically results in a USD depreciation for all assets across the board. With the short-term uncertainty of the crypto market, it’s safe to assume things would drop hard if the DXY shows its strength and goes on a run.
In these periods of uncertainty in the markets, it’s best to remain patient and let the picture paint itself.