Crypto Market Update

BTC

We had interesting days during the last 2 weeks. The collapse of UST/LUNA, triggered BTC to retrace to the support level of the bear flag.

As we can see, the level has been the bounce zone for BTC, we can also start to see the signs of an Adam & Eve reversal pattern which can lead us to a possible relief rally. RSI on 3D is very oversold, and we have also a Bull Divergence which tends to be a valid reversal signal.

As we created a new lower low, we have to redraw now the possible resistance levels that we can have in case of a relief rally.

Those levels can be seen as the main GP also coincident with the MA20W and the retest of the lost bear flag, which should have to be the main resistance level of the movement before more downside continuation.

The first linear level and the first log level would be the main targets in case we will break out the main GP, and we have a strange market cycle. Even if those are the less probable targets for the moment, it is always good to have them in mind.

BTC Dominance

BTC.D has been in an uptrend channel for the last few months, reaching now some points of resistance. Starting with the main GP, diagonal resistance, and also top of the ascending channel.

All this could lead us to a retrace to at least the border of the ascending channel, which is coincident with the support of the channel, giving some momentum to altcoins.

ETH

On the last market update, we pointed out that ETH could fall to the blue box before a possible relief rally. As can be seen on the graph we reached this blue box. The blue box was also coincident with the old descending trend, which can be retested.

On the 3D chart, we can see a Bull Divergence as well, so in the next weeks, we could see bullish momentum.

We have updated the upper levels based on the last lower low. The most probable scenario would be the purple boxes as they are the GP of different movements and retest of the bear flag like BTC.

CONCLUSION

Seems the market has arrived at a possible support zone, which could lead to a relief rally the coming weeks.

This is a normal movement during a bear market, so for the moment, everything seems to be going very similar to what we saw in 2018.

As we are repeating all year, the market is very correlated to SPY & NASDAQ for the moment, so any movement in the traditional markets is likely to be seen also in the digital assets market.