BTC has been slow bleeding mode for the last month and a half and finally created a rounded bottom and a sort of Adam & Eve pattern right at the Golden Pocket zone.
The accumulation of bull divergences on different time frames was a sign of buyers getting interested in the asset, however, the Omicron Covid situation has not helped the markets.
We see how the descending trend on the RSI has been broken, which is a bullish sign.
In the smaller time frames, we see the accumulation of bullish divergences on 12h that created the bottom in the golden pocket and also the falling wedge.
This wedge has broken out, and now we are in the inner purple box, which is the first resistance level of the wedge when that is broken. For the moment, the normal movement would be the retest of the wedge. If that is held and the bullish momentum begins to appear, we could see the movement going to the main purple box.
That would be the first step for a bull run continuation. As always, going above the purple box means bullish momentum, and not being able to break it would be a bearish sign.
RENKO candles turned bullish and broke out the descending trend.
Heikin Ashi also turned green, so at least we see bullish signs in the market but still too weak to be very bullish. Next week we will see more confirmation about a possible trend change or not.
Dominance didn't change that much the last weeks, so still in the support zone. As a result of the retrace we can draw a new purple box, which in case of a bounce would be an important level to watch.
ETH held in the golden pocket as explained last market update and is now dealing with the diagonal resistance. It is not going very fast, but it is getting momentum. The break out of the resistance would be a very bullish sign, while the rejection would be a bearish one. The purple box is exactly at that diagonal rejection, so it is for sure a significant zone.
TOTAL MARKET CAP INDEX
The total market cap is still in descending trend creating the same rounded bottom as BTC. Assuming that we have created a possible bottom, we have updated the levels. Looking forward to seeing the bullish break-out or trend rejection during next weeks.
ALTCOIN MARKET INDEX
Altcoins are still in a downtrend as TOTAL. Levels are updated and for the moment we need to see what happens in the diagonal resistance and purple box level.
The slow bleed that has been leading the markets for weeks seems to stopped and at least we are seeing some bullish momentum.
The end of December and the beginning of January tend to be bullish moments, however, we still remain very cautious due to the global pandemic and new lockdowns in different countries that can affect the market as has been demonstrated several times.
If we wouldn't be in the current fundamental situation, we would be more convinced about a possible bullish momentum, as tends to point to the different technical signals that we are seeing.
Market cycles point for at least one month of bullish momentum, but as always time will tell, and we will see how things develop in the coming weeks.