Bitcoin (BTCUSD) (3-day/8-hour comparison)
After a hopeful day of price action on Thanksgiving, Bitcoin dropped from $59k to $53k late Thursday night into Friday morning. News of a new Covid variant sent panic through legacy markets and as commodities and futures crashed hard, Bitcoin followed suit.
With somewhat bearish price action over the weekend, Bitcoin found support at the long talked about $53k area and has passed some key levels so far today. If bulls can keep up the pressure and pass the Thanksgiving day high, $63/64k seems a likely next stop. If bears can break the lows, $47/48k seems like the next support level down.
Ethereum (ETHUSD) (3-day/8-hour comparison)
Ethereum has fared better than Bitcoin, with less harsh retracements, and maintaining critical support levels amidst the market fear. On our 8-hour chart, ETH is breaching the first red “sell zone”, and if bulls can keep the price above it, the next one up at $5292-5615 is on the table. If bears can push for another test of $4000, it is unlikely that support will hold, and we could see a low $3ks before any more upside.
Strength in ETH means strength in altcoins overall, and we continue to see many altcoins pop off even during harsh price action for BTC lately.
Fundamentals & Correlations (Weekly)
The Bitcoin Dominance chart (BTC.D) remains in the low 40s, giving alts some breathing room, and also a sign that Bitcoin has likely to have topped yet. Even in recent run-ups, when alts lost some ground against it, we have yet to see BTC dominate the market the way we typically expect on a macro top run. Altcoin markets are fertile ground with BTC.D at these levels, but that can change very quickly when BTC takes center stage.
The US Dollar Index (DXY) broke the long-standing diagonal resistance and topped out at this horizontal one. Expecting to see a retrace back to test that diagonal line, and likely give some life back into all markets priced in $USD.