Crypto Market Update

BTC

Following the chart posted in the market update of 2 days ago, BTC is arriving near the support zone which could bring us a bounce.

Not too much to say besides that for the moment, BTC is correlated to S&P500, depending on how SPY will move, we will see crypto assets follow.

BTC Dominance

As explained before, when BTC goes down, Dominance tends to go up except for very few moments that can be different in a bull market but for now, it is following what is expected.

Dominance bounced at the support and now testing the MA20W ( Pink line ). In case the MA would not stop this movement, the next level is still the same purple box as we showed in the last market updates.

ETH

ETH has lost the Golden Pocket (yellow box) and also broke down the descending channel.

Things are being accelerated by the macroeconomic situation, and now we are heading to the first support. As always, that should be a bounce zone and if that does not hold, we will go to lower boxes.

TOTAL MARKET CAP INDEX

The total market cap is still inside the descending channel, arriving at the main support.

We are not drawing lower levels for the moment, and we will wait to see how things develop if we arrive at the blue box. All is oversold in any time frame, so the bounce can be near.

ALTCOIN MARKET INDEX

The altcoin market is now dealing with the lower side of the descending channel and also the last support/resistance level.

The blue box seems to be quite far away for the moment, but not out of the possible scenario.

CONCLUSION

The market is triggered by panic sellers as mentioned in the last market update and also by long liquidations. When markets move so fast, it also tends to have a fast countermovement.

In the 3 days (3D) and weekly (W) time frames, we can see that we are achieving oversold levels where a countermove can develop. But note in our earlier paragraphs, that we haven't reached the levels completely so some last selling pressure is likely.

If this counter move happens, it doesn't mean that markets will recover fully. Until proven otherwise, it has to be seen as a bounce (dead cat bounce) that will result in more selling pressure.

The important question to answer now is if we are in a bear market, not only in crypto but also in stocks. If we analyze how cycles work, it is not out of the probabilities that 2022 could be a bearish year after 2 years of extreme bullishness.