Bitcoin (BTCUSD) (1 day)
It’s been an interesting week for both Bitcoin and the entire crypto market alike. Since the last report, Bitcoin’s come back down to the mid $50k region, signaling trouble for bulls. They showed up around $55k days ago but have since failed to flip any pivotal zones for bullish continuation. Currently, at $56k, bears seem in control for the time being.
Low timeframes look particularly more bearish than high timeframes which gives some promise to a new ATH before year-end. However, if bullish follow-thru continues to fail and critical levels give way, it’s wise for participants to ensure they have their risk-managed and prepare for a drop to lower levels. While fibonacci retracement levels show potential for high $40k’s as a bottom, eyes will first be on the $53k level for the bullish retest that we never got after accelerating upwards last month.
Ethereum (ETHUSD) (3-day/8-hour comparison)
Ethereum, on the other hand, already saw a crucial retest of the $3,900 level. Bulls quickly stepped in to provide momentum upwards, but similarly to BTC, they failed to maintain any follow-thru and flipping of key levels around $4,500.
If Bitcoin continues to bring the market down, key levels to watch on ETH will be $3,600 and $3,300. It should also be noted that a key fibonacci retracement zone for bulls remains in the $3,100 to $3,400 range which holds strong potential for medium-term continuation into the $5k’s.
Fundamentals & Correlations (BTC.D 1-week, DXY 1-month)
Unlike reports of the past, we actually have some fresh news on Fundamentals & Correlations. While Bitcoin Dominance remains in its range from 40% to 50%, we’ve seen strength showing up on the DXY. With the US Dollar Currency Index finally bouncing off support, this only hurts the chances of US-priced assets remaining bullish. However, if we see DXY push a little further into resistance as the major crypto’s fall into bull OTE zones, we could see the makings of another bottom which could propel the crypto markets into another uptrend and be a strategic entry for sidelined fiat.