Bitcoin (BTCUSD) (Daily)
For the first time in weeks, Bitcoin had its first red weekly candle. It coincided with a monthly candle close as well. As the majority of crypto speculators are emotional and irrationally sensitive to price declines, a week of stagnant price movement with some single-digit drops spurred panic on social media. It’s vital to remember that corrections are healthy in all markets. “Up only”, on the other hand, is not. Lucky for Bitcoin bulls, lows have been swept, support has held and a new all-time-high is potentially in the cards.
Ethereum (ETHUSD) (Daily)
Ethereum continues to look equally healthy. While it did see deeper red over recent days, it also tapped liquidity and swept recent lows, causing a bullish reaction and a potential uptrend to be established. Stronger demand continues to show itself with Bitcoin as the macro picture remains sought after by high net worth individuals and institutions. However, if this bullish structure remains on Ethereum, we could see that change.
Fundamentals & Correlations
From last week to today, we see Bitcoin dominance dropping only slightly to 62.09. This change is insignificant and leaves the picture of Bitcoin’s effect on altcoins unchanged. Similarly, we saw little change on the US Dollar Currency Index, currently at 90.950 from last week’s 90.029. The longer the DXY lingers around this zone, the higher the likelihood we will see a stronger move in either direction. With Bitcoin’s fundamentals stronger than ever, it’s unclear if an upward move of DXY will have any effect on the digital asset’s USD price.