ello, esteemed ACG community members!
Get ready for an exhilarating expedition as we delve into the ever-changing rhythms of the market. Armed with invaluable knowledge, you're on the path to becoming a master of well-informed choices. Join us on this exciting journey through the world of cryptocurrencies, prepared to grasp the countless possibilities that lie ahead!
Come, participate in this voyage of exploration and empowerment! Prepare to embark on an adventure into the fascinating realm of digital currencies, where limitless opportunities reveal themselves right in front of you!
Table of contents
- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advices
- Closing Remarks
Market Heatmap and Fear and Greed Index
To initiate my research, I begin by reviewing the market heatmap, which offers me a quick glimpse of the entire cryptocurrency landscape.
The heatmap clearly indicates that the past 7 days have been uneventful, with BTC and nearly all altcoins trading within a narrow range.
Additionally, it's worth noting that the Fear & Greed Index has consistently signaled fear throughout the entire week.
I'd like to reiterate this quote: "The time to buy is when there's blood in the streets." - Baron Rothschild.
However, it's imperative to maintain a sense of caution, as there remains a chance of further decline, potentially testing the support zone before any upward momentum. Therefore, it's wise to exercise prudence and refrain from hasty decision-making.
US500, DXY and Gold analysis
We frequently monitor the US500 index to assess the overall market sentiment. This is crucial because the cryptocurrency market often exhibits a positive correlation with the stock market, influencing its movements.
US500 Chart - Daily Timeframe
The US500 is currently displaying a bearish medium-term trend, although it did find support this week at the previous significant low of 4330.0.
Should the 4330.0 level be breached to the downside, we should anticipate a further decline toward the next support level marked in blue at 4200.0.
US500 Chart - H4 Timeframe
For the bulls to regain control and propel the US500 back to the 4600.0 level, a breakthrough above the most recent significant high at 4474.0 is required. Such a development would constitute a positive signal for overall market sentiment.
As a standard practice, we closely monitor the DXY - USD Index. This is because the value of nearly everything, including BTC/USD, is tied to the USD, making it the reference currency.
DXY Chart - Daily Timeframe
The USD index remains robust, particularly following its breakthrough above the 103.6 supply zone.
Presently, the DXY is in the process of retesting a previous significant high, and there is potential for it to trade even higher, entering the green resistance zone between 105.0 and 105.7.
DXY Chart - H4 Timeframe
Here's the perspective from the H4 timeframe, which highlights an overall bullish trend. To shift the momentum in favor of the bears, a decline below the most recent significant low, indicated in green at approximately 103.3, would be necessary.
Should this occur, it could potentially have a positive effect on the cryptocurrency market.
Meanwhile, the DXY remains bullish and has the potential to continue trading higher, as previously mentioned on the daily chart.
GOLD Chart - Daily Timeframe
In the case of Gold, the bulls managed to surpass the 1905.0 mark, indicating the start of a correction phase.
At present, we anticipate a brief upward movement in the short term, with the aim of reaching the upper trendline and the orange resistance zone. It's in this area that we will be on the lookout for potential sell setups on lower timeframes.
GOLD Chart - H4 Timeframe
To maintain bullish control and advance towards the 1935.0 level, a breakthrough above the most recent high marked in green, approximately at 1924.0, is required.
Conversely, for the bears to regain control, a drop below the support at 1905.0 is necessary.
USDT.D, Bitcoin and Ethereum analysis
As usual, I always start my analysis with USDT.D as it serves as an indicator of traders' sentiment. USDT.D reflects whether traders are optimistic (investing in cryptocurrencies) or pessimistic (shifting towards stablecoins).
USDT.D Chart - Daily Timeframe
As mentioned earlier in the article, this week has been uneventful for the entire crypto market, with USDT.D still confined within a tight resistance range.
To sustain bullish control, we require a daily candle to close above the upper boundary of this resistance zone, which stands at 8.1%.
USDT.D Chart - H4 Timeframe
On the flip side, to see the bears take charge and signal a transition from a bullish to a bearish stance, we need an H4 candle to conclude its session below the preceding significant low, roughly at 7.89%.
In such a situation, it could be seen as a positive development for the cryptocurrency market.
BTC Chart - Daily Timeframe
Similar to USDT.D, BTC has remained confined within a tight range. In the event that this range is breached to the downside, we should anticipate a continuation of bearish momentum, potentially leading to a decline to the 25,000 level.
At that point, we will be vigilant for potential bullish reversal setups, provided that the support at 24,200 remains intact.
BTC Chart - H1 Timeframe
Analyzing the H1 timeframe, to witness short-term bullish control, there's a requirement for a breach above the minor resistance at 26,300. Subsequently, for the bulls to maintain their grip, a break above 26,800 is essential. In this scenario, we can anticipate BTC to revisit the former resistance level at 27,500.
However, as things stand, the prevailing bias remains bearish until the bulls assert their dominance. If BTC descends below the prior low of 25,650, we should prepare for further bearish movement, potentially reaching the daily support range ranging from 24,000 to 25,000.
ETH Chart - Daily Timeframe
Much like BTC, ETH has been experiencing a lack of volatility and has remained confined within a narrow range spanning from 1630.0 to 1700.0.
In the event that it falls below the 1630.0 level, it is reasonable to anticipate the possibility of additional bearish movement, potentially extending towards the lower boundary of the orange channel.
ETH Chart - H4 Timeframe
Taking a medium-term view on the H4 timeframe, the bulls must successfully secure a breakout beyond the important psychological level of 1700.0 to assert their control.
Should this materialize, we can anticipate a retest of the 1815.0 resistance level.
Meanwhile, ETH is expected to continue trading within this range.
Quotes / Advices
The market doesn't care about how you feel. Get used to it!
Accept that the market operates independently, adhering to its own timeline and agenda.
No amount of preparation can shield you from the possibility of someone on the other side of the world executing a significant trade that disrupts your plans.
The best approach to handle the unpredictable moves that the market may make against you is to detach from emotional reactions.
Just acknowledge that the market will follow its own path, freeing yourself from stress and the inclination to prematurely take profits or exit positions because you have a specific expectation of how the market should behave.
In summary, the current cryptocurrency market is relatively uneventful, with Bitcoin and most altcoins trading in narrow ranges.
The Fear & Greed Index consistently signals fear. Caution is advised, but opportunities might emerge.
In traditional markets, the US500 index shows a bearish trend but found support at 4330.0.
Breaking this level could lead to a further decline. Surpassing 4474.0 would indicate positive sentiment.The USD Index (DXY) remains strong, potentially reaching 105.7. A drop below 103.3 might influence the cryptocurrency market positively.
Gold is in a short-term upward correction, aiming for 1935.0. Falling below 1905.0 would favor the bears.In cryptocurrencies, USDT.D indicates an uneventful week. A daily close above 8.1% is needed for bullish control.
Bitcoin remains within a tight range. A downside breach might lead to 25,000 with a potential reversal near 24,200. Bullish momentum requires surpassing 26,800.
Ethereum lacks volatility, hovering between 1630.0 and 1700.0. Breaking 1700.0 might target 1815.0.In conclusion, the cryptocurrency market is quiet with a fear sentiment.
Traditional markets, especially the US500 and USD Index, can influence crypto. Bitcoin and Ethereum are range-bound, awaiting key support and resistance breaks. Caution and prudence are advised.