ello ACG warriors, and welcome to a new AltCryptoGems Market Outlook.
Explore the latest innovations shaping the market, deciphering market sentiment through the Fear & Greed Index and a vibrant market heatmap.
Delve into the intricacies of major assets like US500, DXY, Gold, Bitcoin, and Ethereum, uncovering essential support and resistance thresholds.
Join us in this enthralling odyssey, where boundless knowledge empowers confident navigation of the ever-evolving cryptocurrency universe.
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
1. Market Heatmap and Fear and Greed Index
To kickstart my research, I initiated the analysis by examining the market heatmap, offering a swift overview of the entire cryptocurrency landscape.
For the second consecutive week, the crypto market has shown positive trends, commencing with a notable 3.48% surge in BTC's value. However, altcoins have maintained relative stability during this period.
Consequently, the heatmap indicates that the prevailing sentiment remains predominantly bullish.
Furthermore, it's worth noting that the Fear & Greed Index continues to signal "Neutral" for the second consecutive week, indicating a period of uncertainty and imminent decision-making.
It's crucial to observe that various crypto assets, such as BTC and ETH, are nearing or maintaining positions around a formidable resistance zone. Hence, it's prudent to exercise caution and avoid impulsive decisions in the current market environment.
2. 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 currently consolidating around a robust support level, marked by the lower black trendline, which acts as a non-horizontal support.
Consequently, our strategy involves looking for potential buy setups on lower timeframes, provided that the support at 4140.0 remains intact.
To swing the momentum in favour of the bulls, a breakthrough above the last minor high at 4348.0, indicated in orange, is imperative.
In such a scenario, we anticipate a bullish surge toward the red supply level at 4445.0.
However, in the short term, it is anticipated that the bears will continue to exert control.
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.
Following the breakthrough above the 105.7 resistance level, the USD index is currently retesting this zone, now functioning as support. Consequently, we anticipate bullish momentum to resume as the price nears the 105.7 level once more.
From the H4 timeframe perspective, the market remains under bullish control as long as DXY continues trading above the lower blue trendline and the 105.7 level.
However, in the event of a downward break below the 105.7 support, we anticipate a bearish correction towards the 105.0 support level, aligning with the lower red trendline.
Currently, Gold remains within a significant rejection zone, marked by the intersection of a support level, demand area, and the lower brown trendline. Consequently, we expect bullish momentum to come into play, potentially leading to a reversal, as long as the 1800.0 support level remains intact.
Looking at the H4 timeframe, for the bulls to regain control, a crucial breakthrough above 1841.0 is necessary. Currently, Gold is bearish, and there's a possibility it might continue trading lower to test the 1800.0 support level.
3. 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).
Following the 7.94% breakdown, USDT.D has been trading bearishly within the descending channel outlined in orange.
As of now, bearish momentum persists, and we anticipate a further downward movement until reaching the 7.46% support level.
A shift in momentum from bearish to bullish can only be expected if the bulls successfully breach the 8.1% resistance.
Analyzing the H1 timeframe, USDT.D is currently confined within a range from a medium-term perspective. To reestablish control, the bears must secure a break below the previous major low at 7.73%.
BTC has experienced a period of relative stability over the past two days, consistently hovering around the 28,000 resistance mark.
To maintain the bullish momentum, a significant breakthrough above 28,500 is essential. Once this level is surpassed, we can anticipate a movement toward the 30,000 resistance level.
Simultaneously, for the bears to establish short-term dominance, a break below the last minor low at 27,700 is imperative. If this occurs, a decline toward the lower red trendline around 27,000 can be anticipated.
However, at the moment, the bulls continue to maintain control in both the short-term and medium-term perspectives.
ETH has experienced a relatively uneventful week, remaining confined within a narrow range.
To shift the momentum in favor of the bulls, we are still awaiting a breakthrough above the 1750.0 level. Once achieved, we can anticipate a movement toward the 1850.0 resistance level.
According to our analysis from two weeks ago, ETH faced rejection at the upper boundary of the red rising broadening wedge and the green major high, leading to a decline in its value.
Currently, ETH is approaching the lower red trendline, which acts as a non-horizontal support.
For the bulls to regain control and anticipate a movement toward 1750.0, a crucial breakthrough above the last minor high marked in red at 1670.0 is necessary.
4. Quotes / Advice
Don't forget: Every moment you spend waiting is money earned!
Your patience is your paycheck in the market. Stay committed to your strategy, day in and day out, and the market will acknowledge your dedication.
Trading without a plan is a guaranteed path to failure.
If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much.
5. Closing Remarks
In summary, the cryptocurrency market has shown positive trends, with BTC surging by 3.48%, while altcoins remain stable.
The market heatmap indicates a predominantly bullish sentiment. However, the Fear & Greed Index remains "Neutral," signifying uncertainty.
Various assets, including BTC and ETH, approach significant resistance zones, urging caution.
The outlook extends to traditional markets, with the US500 consolidating around support at 4140.0. A breakthrough above 4348.0 could lead to a bullish surge.
The DXY (USD Index) is bullish above 105.7, but a break below may result in a bearish correction towards 105.0.
Gold is bearish, requiring a breakthrough above 1841.0 for bullish momentum.
USDT.D shows bearish momentum within a descending channel, with potential for a shift if resistance at 8.1% is breached.
BTC hovers near the 28,000 resistance, needing a breakthrough above 28,500 for a bullish movement.
ETH remains in a narrow range, requiring a breakthrough above 1750.0 for bullish momentum. Bulls must breach 1670.0 to regain control.