ello ACG warriors, and welcome to a new AltCryptoGems Market Outlook.
Come along with us as we explore the newest developments influencing the market, interpret market sentiment using the Fear & Greed Index, and examine an interactive market heatmap.
In this outlook, we will thoroughly examine significant assets like US500, DXY, Gold, Bitcoin, and Ethereum, revealing crucial support and resistance levels.
From BTC rising by 11% to a positive shift in the Fear & Greed index and Gold nearing the 2000.0 mark, this article leaves no stone unturned!
Without delay, let's get started.
Table of contents
- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advice
- Closing Remarks
1. Market Heatmap and Fear and Greed Index
To commence my research, I delved into the analysis by examining the market heatmap, offering a comprehensive overview of the entire cryptocurrency landscape.
Following a whole week of bearish sentiment, the crypto market surprised everyone this weekend with a significant surge.
Consequently, the heatmap illustrates a notable shift from bearish to bullish sentiment, with Bitcoin up by 11% and the majority of altcoins experiencing a rise ranging between 5% and 10%.
Furthermore, it's worth noting that the Fear & Greed Index shifted to “Greed” yesterday, which is a positive signal we haven't seen in almost a month.
It's crucial to observe that several crypto assets, including BTC and ETH, are still trading within a significant range from a long-term perspective. Therefore, it's prudent to exercise caution and refrain from making impulsive decisions in the current market environment.
- US500, DXY and Gold analysis
We consistently monitor the US500 index to assess the current market sentiment. This practice is vital because the cryptocurrency market often exhibits a significant correlation with the stock market, and this interconnection can impact its fluctuations.
The US500 is still overall bearish from a medium-term perspective, trading inside the falling channel marked in orange.
However, it is currently approaching the lower bound of the orange channel and the lower bound of the long-term bullish trendline marked in black.
Thus, we can anticipate the bulls to step in soon from this local support, as long as the 4140.0 level holds.
For the bulls to take control from a short-term perspective, a break above the last minor high at 4280.0 is necessary. In this scenario, a movement towards the upper orange trendline can be expected.
To anticipate a significant bullish impulse within the overall rising trend from a long-term perspective, a break above the last major high in red at 4400.0 is crucial.
Meanwhile, the US500 could remain bearish and might still decline within the blue support zone.
We diligently track the DXY - USD Index as part of our regular procedure. This practice is essential because the value of almost all assets, including BTC/USD, is intricately linked to the USD, which serves as the standard currency in the financial markets.
DXY is still trading within a range, currently retesting the 105.0 - 105.7 support zone. Therefore, we can anticipate the bulls to regain control in the near future.
From the H4 timeframe perspective, it's evident that the bulls have taken control by surpassing the significant orange high. As indicated on the H4 chart, we anticipate continued bullish movement upward if the last high at 106.69 is broken.
Meanwhile, DXY could still trade lower to test the 105.7 support before moving higher.
Gold remains robust, particularly after breaking above the 1905.0 resistance level. To sustain bullish momentum, a daily candle closing above 2000.0 is essential.
In this scenario, a movement towards the next resistance at 2065.0 can be anticipated.
Examining the H1 timeframe, Gold continues to exhibit bullish momentum and has the potential to continue trading higher unless the last low in orange at 1955.0 is breached downward.
2. USDT.D, Bitcoin and Ethereum analysis
As a standard practice, I begin my analysis with USDT.D as it functions as an indicator of traders' sentiment. USDT.D reflects whether traders are optimistic, indicating investment in cryptocurrencies, or pessimistic, signifying a shift towards stablecoins.
Based on our analysis from last week, USDT.D rejected the 8% resistance and moved lower.
Currently, USDT.D is hovering around a minor support zone in red at 7.46%. If this level is broken downward, we can anticipate a bearish continuation towards the 7.25% support level.
In the H1 timeframe, USDT.D broke our last major low in orange at 7.85% and traded lower as anticipated.
Currently, USDT.D is resting around a support zone. However, for the bulls to take control, a break above the last high in green at 7.65% is necessary.
Meanwhile, USDT.D would remain overall bearish and might continue to trade lower, which is favorable for the crypto market.
After breaking above 28,500, BTC exhibited bullish momentum and traded higher, reaching the 30,000 round number.
To maintain the bullish momentum, a daily candle closing above 30,000 is crucial. In this scenario, a movement towards the 32,000 level can be expected.
The bulls have maintained control since last week, with the last low in orange at 28,000 holding strong and resisting a downward break.
Currently, BTC is positioned around the upper boundary of the red wedge pattern and the 30,000 resistance level. However, for the bears to gain control, a break below 29,500, as marked in green, is necessary.
Meanwhile, BTC would remain bullish and could continue to trade higher as long as the support at 29,500 holds.
ETH rejected the 1500.0 round number this weekend and is currently trading higher.
The bulls will continue to dominate from a medium-term perspective, provided the 1500.0 support remains unbroken.
As long as the 1500.0 level holds, there is a possibility of bullish momentum resuming at any moment.
From the H4 timeframe and a short-term perspective, the bulls are expected to maintain control, with a movement towards the 1730.0 resistance anticipated.
Unless the last low in red at 1600.0 is broken downward, a movement towards the 1500.0 support can be expected in that scenario.
3. Quotes / Advice
Technical Analysis isn't just charts and numbers; it's a language.
Each candlestick, swing, and trend tells a story.
I immerse myself in this narrative, gathering insights from patterns and indicators.
It's not passive observation; it's a dynamic dialogue with the market.
Through this language, I decode market intricacies, making informed decisions based on the nuanced messages it conveys.
4. Closing Remarks
In summary, the cryptocurrency market experienced a surprising shift from bearish to bullish sentiment following a week of decline.
Bitcoin rose by 11%, and most altcoins saw increases ranging from 5% to 10%, leading to a positive shift in the Fear & Greed Index, signaling "Greed" for the first time in nearly a month.
In the traditional markets, the US500 index showed bearish tendencies within a falling channel but might see a bullish reversal if it breaks above key levels.
The DXY (USD Index) remained within a range, with potential bullish movement expected upon surpassing specific highs.
Gold exhibited strength after breaking resistance at 1905.0, aiming for higher levels.
In cryptocurrency-specific analysis, BTC maintained bullish momentum above 30,000, contingent on daily closes above that level, while ETH displayed potential for upward movement as long as support at 1500.0 holds.
Traders should closely monitor these indicators and exercise prudent decision-making in the current market climate.