BTC had a very sharp drop last week after several bear divergences on the 3 days and monthly time frame, together with a very high open interest and the over-leveraged market we saw a snowball effect.
At this point, the main chart looks like this:
As we can see, we have broken all supports including the main trend, the Golden Pocket and the MA20W (red line). From a technical view, it seems that we have broken the market structure, so we will try to figure out what are the next possible scenarios based on a new chart:
Those are the main support and resistance levels at this point. What we can see is that we are now holding in the main golden pocket (Yellow Box). Zooming in and using other indicators, we can see also Ichimoku clouds are turning bearish but for the moment price is being held by the EMA200 (Green line) which is considered a bullish support.
For the moment we have no clear signal of the most probable scenario. We can see both sides as an equal probability, depending on traditional markets and also from the news related to Covid as we have been talking about in the last market update.
Dominance arrived at the blue box that we pointed out last week, which is a probable bounce zone. Still ranging between the same zone since May.
ETH bounced in the golden pocket (Yellow Box) and MA20W (Pink line). Still holding its momentum, maybe even better than BTC. Levels remain the same for the moment.
TOTAL MARKET CAP INDEX
Total market cap entered into a descending channel for the moment that has to break out if we want to see bullish continuation. For the moment, old resistance levels are being used as support now.
ALTCOIN MARKET INDEX
Altcoin market cap dropped until the border of the main ascending channel and has been holding since the main GP (golden pocket). Also in a descending trend for the moment.
The sharp drop of last week resulted in a broken market structure for BTC. The most interesting thing is that ETH held better than BTC and seems to be recovering faster than that one, as well as other altcoins that are even creating new all-time highs.
The market is pretty volatile right now and due to the external factors remains unpredictable and not easy to read. The nice bull trend that we were holding since summer has been broken, but that does not mean that it can not be recovered in the next few days.
As always, we see both sides of the markets and for the moment we could say that we are in a 50/50 situation with no clear signals, so we will have to wait until the next days/weeks to see more information and see where the market wants to go.