Bitcoin (BTC) closes another week below the 50 weekly moving average. Last week, the opening price of bitcoin was $23559. whereas, Bitcoin (BTC) closes around $22,428, losing 4.8% of its value in 1 week. The crypto total market capitalization that opened above 1 Trillion last week, closes below $1 trillion.
Despite the flash crash on Friday, the bitcoin’s market structure is still bullish on the daily time frame. I will share a detailed analysis of bitcoin (BTC), Ethereum (ETH), and S&P500 In this article.
Bitcoin Weekly Price Analysis
According to the data from the Tradingview, bitcoin (BTC) is changing hands around $22500 at the time of writing. Bitcoin closes the second week in red and loses 10.6% of its value in the last two weeks. The correction at this stage is healthy as long as bitcoin (BTC) is above the 20 weekly moving average.
The main reason for this correction is the bearish divergence on the Relative Strength Index (RSI) and bearish crossover of the Moving Average Convergence Divergence (MACD) in 3 Day Time Frame.
There was a constant bearish divergence at RSI on the Daily and 3 Day time frames that played out. Price correction at the bottom to align price with RSI is always good in the mid to long term.
Second, the bearish crossover of MACD on 3 Day time frame. The 3 Day time frame helps to predict the next 4-8 weeks.
Technically, the rejection from the 50 weekly moving average, RSI divergence, and bearish crossover on MACD, all contributed together to this sell-off.
As discussed last month, the bitcoin’s (BTC) price action is still in long accumulation and side waves.
Bitcoin Market Structure
In continuation of my last month’s analysis “bitcoin (BTC) has hit the bottom.” This means bitcoin will not go below $15000 before the next bear cycle. Another thing that is support that analysis is Market Structure.
So far, bitcoin (BTC) is in the bullish market structure and printing proper H-H and H-L. This means bitcoin has tested the bottom and now it is in the accumulation phase as moving side waves. This analysis is valid as long as bitcoin is above $15000.
Crypto Total Market Capitalization
The crypto market loses more than $20 billion last week. The crypto total market cap falls below $1 trillion. At the time of writing, the crypto total market cap is at $986 billion. The crypto total market cap has formed a new weekly resistance at $1.08 trillion.
The strong support for the total crypto market is at $945 billion. The crypto market may lose another $110 if closes a week below $945 billion. As long as it is above this level, there is not any fear of a big sell-off.
Ethereum (ETH) Price Analysis
On a weekly time frame, Ethereum (ETH) is facing a lot of sell pressure near $1700. ETH is down 9.27% in the last two weeks. ETH is trading at around $1562 at the time of writing. The major support for ETH is $1429, the area of 20 weekly moving averages.
Ethereum, the second largest crypto by market cap will remain range bound between $1750-1400 because of the weekly support and resistance area and the area of 20-50 weekly MA.
However, as MACD suggests ETH in the BTC pair is getting good momentum. At the time of writing ETH value in BTC is 0.069. The major support in the BTC pair will remain at 0.066 BTC and the major resistance is at 0.088 BTC.
S&P500
Despite the strong correlation between the US Stock markets and the overall crypto market, The stock markets remained green last week. The S&P500 gained 1.90% last week.
The 20 weekly moving average is on the verge of crossover the 50 weekly moving average, this crossover will happen within two weeks if the index remains at the same points range.
This crossover means, the bears are exhausted and bulls in the stock markets are taking charge now.
The S&P500 index tested the trending support at 3940 and closes above 4040 last week. The major resistance for the Index is 4300 points.
Image From: Tradingview and Unsplash.
*Disclaimer: All views expressed in this article is for educational purposes only and should not be constituted as financial advice.
