Bitcoin (BTCUSD) (1 day)
The past week has shown Bitcoin in a fairly tight range, with what appears to be further accumulation as it prepares for another round of price discovery. Price adhered nicely to a local fib range and allowed it to gain the fuel it needed for a push up to $65k. If price action remains clean and with bulls in control, we could see the world’s leading digital asset approach $70k rapidly. If bears decide to show up, key zone’s remain in the high $50k range as well as the high $40k range.
Overall, bulls remain in control for this cycle with no bear market in sight. If bears steal control and push us into bear market territory, it would require high timeframe closes below the high $40k range. With both market momentum and outside fundamentals playing their parts, the likelihood is low for this to occur in the short term.
Ethereum (ETHUSD) (1 day)
The number two digital asset has shown incredible strength in recent weeks as Ethereum continues its push to $5k and beyond. The past week has shown only minimal retraces thus allowing almost no safe entries for sidelined participants. The routine of late has been resistance-turns-support, retest, and send with no notable resistance from bears.
Once again in price discovery, it appears that ETH could be ramping up momentum for accelerated expansion. Many analysts, including us, believe ETH holds the potential to seriously outperform BTC in the coming months. There are many outside factors at play and only time will tell. One thing is for certain – pain only grows for those not holding some!
Fundamentals & Correlations (weekly)
Bitcoin’s market cap dominance (BTC.d) remains relatively unchanged as the market grows in tandem. We see dominance ranging in the 40% to 50% range as the rising tide remains steady. It remains unclear if Bitcoin will take the lead and leave the rest of the market behind so participants should remain prepared for all scenarios.
The US Dollar Currency Index (DXY) also goes unchanged, as it sits above key support waiting for bullish momentum to show. As we reiterate weekly, a rise on DXY could certainly slow the expansion of both BTC and the entire crypto market cap.
The lack of movement on both continues to provide ample opportunities for crypto traders to capitalize on so most would agree that now’s the time to focus and execute!