The crypto planet on fire again? – An hour before the kick off of the Wall Street open yesterday, cryptocurrencies suddenly surged higher. Still, the catalysts that justify this movement remain technical rather than fundamental. Especially since on this last aspect, we currently have to make do with speculative rumors about a possible slowdown in the Fed’s monetary tightening.
This is why investors will be advised to remain on their guard given the current market environment. Admittedly, the impressive rebounds of Bitcoin and Ethereum made it possible respectively to go back above $20,000 and $1,500 in favor of a drop in the Dollar Index, a lull in bond rates and a a return of risk appetite on the equity market. But on the other hand, there is still work to do to put an end to their bear run, which will soon blow out its first candle.
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Bitcoin in daily units – A bullish candle but prices stumble below the Kumo
While cryptocurrency investors are happy with a return of Bitcoin above $20,000, caution is still in order. Because precisely in daily units, yesterday’s large bullish candle (orange dot) collides below the Kumo lower boundary (Ichimoku cloud), aka the Senkou Span A (SSA).
However, in the short term, the bulls seem to be taking over the bears. Except that the price crossing beyond the downward line of the bear run lacks momentum in my eyes.
To consider a reassuring graphical point of view, a return of BTC prices inside the cloud becomes imperative. With the hope that they will go up towards the resistance of $22,000. And assuming the King of Cryptos breaks out above Kumo, sellers may drop as prices soar towards the $26,000 resistance.
Ethereum in daily units – Conditional reconquest of $1400
Regarding Ethereum, yesterday’s large bullish candle caused prices to exit from the top. And at the same time, she is inside the Kumo although it is far-fetched. Just like bitcoin, the bulls are suddenly putting pressure on the bears by trying to break the resistance of $1400 upwards.
In order to maintain this recent bullish momentum, we would have to quickly get out of it to project ourselves on ETH prices above the Kumo and the descending line. Even better, this double positive technical signal would favor a reassembled towards the resistance of $ 1700 on which the prince of cryptos previously stumbled.
The rallies in Bitcoin and Ethereum that we have just witnessed in the run up to important macroeconomic and microeconomic events this week, could they not send a warning message to the bears? This would potentially be the challenge of the days / weeks to come which could portend the beginning of something big.
Or on the contrary, we might have to deal with a new bull trap (bull trap) as has been the case throughout this year. In which case, their respective bear runs since their ATH in November 2021 would potentially be heading towards their terminal phase under the sign of genuine capitulation.
And finally, I recommend that you closely monitor the evolution of the Dollar Index and bond rates, which may well determine one or other of the market scenarios mentioned in the previous paragraphs.
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