Crypto market update 04/27/23
The S&P500 is consolidating at current levels with a slight retracement, following its recent encounter with the resistance area. Until a successful breach is made, further insight into the market's potential direction remains unclear.
In the previous market update we talked about, when achieving the critical level, the most likely scenario was the consolidation of the area. This pattern persisted throughout the past week, however, we are currently witnessing a rise in bullish momentum. Should this trend continue, it may drive the market towards the upper boundary of the orange box, wherein lies a significant level - the primary GP of the primary movement since November 2022. This occurrence will coincide with the apex of the Main Bull flag and is likely to prompt a considerable retracement. While the possibility of rejection at the current juncture remains, it is currently considered the least likely scenario.
Instead of scrutinizing the low time frames in Bitcoin, we will shift our focus to the weekly chart. Evidently, we are making steady progress, and there is a precise replication of cycles in motion at present. In light of this, it is crucial to acknowledge the possibility that a downtrend may commence towards the conclusion of May or June, persisting till the year-end. As a result, we must exercise caution when encountering resistance.
The market dominance is displaying an upward trend today, coinciding with the surging value of BTC. It is highly probable that if the momentum of BTC continues to escalate over the next few weeks, there will be a definitive breach of the multi-year resistance level.
Ethereum (ETH) has successfully attained the Capitulation 161 level, and the chart analysis reveals that there was an accumulation of selling orders responsible for the subsequent retracement to earlier levels. Presently, with the rising value of BTC, ETH is also experiencing an upsurge, albeit at a slower pace than BTC, which can be attributed to the rising dominance level at the moment.
Following a phase of two weeks of consolidation, the cryptocurrency market is presently experiencing a surge.
It is imperative to focus on the market cycles and abstain from allowing emotions to guide investment decisions. Currently, the market exhibits consistency with respect to cycles, and it is crucial to capitalize on this trend while it lasts.
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