Bitcoin (BTCUSD) (1-day)
The bulls are back!
Bitcoin’s shown tremendous strength over the past month as buyers showed up around $40k in September and never looked back. Both institutions and retail can’t get enough and momentum hasn’t slowed. Just last week, we saw April’s all-time-high breached with a quick turndown as bears approached the battlefield. While caution should be had at these levels, there’s no doubt that bulls are looking to keep control and push towards $100k. If bears see some short-term victories, areas of interest lie around $57k and $47k.
Ethereum (ETHUSD) (1-day)
Ethereum looks equally as bullish as it also knocks on the door of fresh all-time highs. Similar to BTC, ETH saw sellers showing up at May’s all-time high for only a minimal push downwards. The push down to $3,968 gave us a clean retest of local resistance-turned-support and gives a clear indication that bulls are ready to break upwards. However, if bears decide to pull the rug, key zones remain at $3,600 all the way down to $3k. It would take a strong double-digit drop to turn this chart bearish in the mid-term.
Fundamentals & Correlations (BTC.D 3-day, DXY 1-week)
While we’ve seen Bitcoin take some dominance back in recent weeks, the BTC.D chart shows a clear runway for the king to steal the show from the rest of the market. With a chart showing Dominance having a strong chance of rising, it aligns well with current price action looking to resume price discovery. In these conditions, altcoin traders should proceed with extreme caution.
The US Dollar Currency Index counters the BTC.D chart, as it also shows potentially bullish conditions and continues to confirm support below. As we reiterate every week, a strong $DXY typically results in bearish assets across the board. However, with outside fundamental factors evolving daily, it’s unclear where it will end up in the short term.