Written by Metal Team

On May 24, 2021

Market Report May 24 2021

Bitcoin (BTCUSD) (1-day Chart)

Bitcoin bulls saw serious exhaustion in recent weeks as the market got hammered with FUD – China bans, Musk’s concerns over eco-friendliness, etc.  As market participants digested this, the sell-off continued and market sentiment shifted rapidly.  Since Friday, we’ve seen strong spot volume and exchange outflows of BTC, signaling re-accumulation, or as some would say – transferring from weak hands to strong.  Price dipped to previous Point-of-Breakout (POB) as well as bullish fib range Optimal-Trade-Entry (OTE).  As a result, we’re beginning to see some green across the board as bulls defend it.  Key zones for bulls to break is $54,600 if a new all-time-high is to be achieved during this cycle.  If not, further downtrending deep into the $20k’s remains a possibility in the short term and could result in the elusive retest of our earlier $20k all-time-high.

Ethereum (ETHUSD) (1-day Chart)

With Bitcoin’s rapid bearishness pouring in over recent weeks, Ethereum followed suit, as did the rest of the market.  Similarly to BTC, Ethereum bulls responded nicely as price approached the previous Point-of-Breakout (POB) and bullish fib range Optimal-Trade-Entry (OTE).  The key zone for Ethereum bulls to watch is $3,600.  If bears step in heavy there, it could get ugly – with potential for dipping below our previous cycles’ all-time-high in the $1,400’s, this would be macro bearish.

Fundamentals & Correlations

As the market saw Bitcoin Dominance drop in recent weeks, some alts, including some “dinosaur” coins, ran with serious strength.  However, since the heavy dumping of late, Bitcoin’s Dominance is sitting on support.  As a result, we could see momentum shift back to BTC, even if only temporarily, while alts underperform.  The US Dollar Currency Index isn’t revealing much as it sits within range and awaits its next direction. 

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