Bitcoin (BTCUSD) (3-Day/8-hour Comparison)
Bitcoin’s break of $50k didn’t last too long, and bulls have had trouble maintaining control over price since then.
We now see our orange “neutral” zone on the 3-Day chart providing some support. The longer we dribble along this zone without a significant reaction, the more troubling it potentially is.
Looking at our more zoomed in 8-hour chart, a swift rejection from the red zone does not look very good. The weak bounce with no follow through that came after makes it seem like lower tests for support will be needed before any significant upside moves can happen. Another 10% drop could be on the table, so as always- be prepared for anything.
Ethereum (ETHUSD) (3-Day/8-hour Comparison)
Ethereum is looking equally troublesome for bulls after a nice run up last month, fueled largely from NFT mania.
Now the 3-Day chart is painting a classical “double-top” pattern, and bulls look in danger as the critical $3200 level has been repeatedly tested. If we look at the 8-hour range, it seems that the green box is likely to be retested, and if that can’t provide a strong reaction, things could get ugly. A candle body above the “neutral” orange box at $3520 would be a positive sign and we could expect further upside if that area is reclaimed as support.
Fundamentals & Correlations(Weekly Candles)
Looking at our usual correlative indicators of Bitcoin Dominance (BTC.D) and the US Dollar Index (DXY), the main thing that is apparent is that altcoins could be in store for major growth with Bitcoin dominance at 41%.
The US Dollar Index is consolidating between these two levels, without a clear direction where the break will go.