Bitcoin (BTCUSD) (3-day/8-hour comparison)
Bitcoin wrapped up the month of October with strength and it’s looking like November will be another action-packed month for the crypto markets.
Our 3-day range has played out beautifully for the past few months, and now we see some bullish consolidation below our first resistance level. A high time-frame candle close above $70k should lead us to the psychological level of $100k that is on everyone’s minds, with the potential to go much further.
Zoomed in on the 8-hour chart, we can see that bulls need to conquer the $63k level of our orange “neutral” box to continue the uptrend in the short term. Our recent quick drops to the $57/58k area have been met with strong buy support, with a nice reaction of our green “buy” box.
On the macro view, things are unquestionably bullish, in the short term we could see some choppy consolidation between $56-63k before the next leg up. There is still the possibility that we could see a re-test of the low $50ks, but there is clear demand for BTC at anything below $60k for now.
Ethereum (ETHUSD) (3-day/8-hour comparison)
Ethereum followed Bitcoin’s lead and broke its previous All-Time-High last week, and appears to have taken center stage. Maintaining support above $4000 and minimally impacted by the recent dips on Bitcoin, Ethereum looks like it could be just getting started.
We’ve seen in the past that when Ethereum shows strength and begins trending, it can run hard. On our 3-day fib range, we see consolidation just below the high, with a potential breakout leading to $5300. On our zoomed-in 8-hour chart, we are currently chewing through our first resistance level, with a confluent next area of interest at $5300-5600 upon a potential breakout. A rejection and break of $4000 support would likely lead to a rapid drop to the low $3000s.
Strength from ETHBTC means strength for altcoins in general, and things could get quite interesting soon if ETH maintains the current momentum.
Fundamentals & Correlations (weekly)
Looking at Bitcoin dominance (BTC.D) and the US Dollar index (DXY), things have looked the same on these two charts for quite a while now. Bitcoin dominance is still well below the 51% level, giving altcoins prime conditions to outperform. The US Dollar index continues to consolidate within these two diagonals, failing to make a breakout in either direction.
No major conclusions to draw from these two indicators at the moment.