It looks like the bears are back at work. BTC futures contracts expired over the weekend and that might be responsible for the skewness in price action.
Futures contracts don’t continue indefinitely. They have periods when they are expected to end and in these periods, there are usually some forms of market volatility. The BTC Quarterly contracts are expected to end in March, June, September and December of each year.
When a contract of a particular quarter expires, it is immediately replaced by a new contract from the next quarter. At the point of this switch, there usually are some forms of market volatility.
However, the bulls have so far shown a lot of strength and resilience as they did not just hold the 29k to 30k support region but triggered a rally to the upside range of 33.5k region as at the time of writing, this bullish movement has caught the interest of a lot of retails traders as Bitcoin approaches another weekly close draws closer with which a further push to the 35k region could see the candle close on a Bullish note.
A clear upward trend can be seen as the pair formed a support at the $28,600.00 and $30,082.79. From here we expect that the pair should trade above the $30,000 bench mark in the coming days.
It can’t be over-emphasized the importance of bitcoin closing above its open, from a Bullish perspective we can see a W pattern forming on the 1hr timeframe which could potentially trigger the move to the pro-35k region which would be a very interesting move for the Giant Pair.
We can also observe a confluence in the 21EMA price region coinciding with our weekly close potential target, could it be a coincidence? That’s a question the market will answer in due time.
Key Support Levels: $32,000, $31,500 – $31,200, $30,600, $30,000, $29,350.
Key Resistance Levels: $33,500 – $34,000, $34,800, $35,700, $38,000, $39K.
China’s crackdown on miners is still having effects on the HashRate in the short term as we can see a redistribution in the ecosystem.
We saw a Wycoff distribution pattern that saw the potential end of the Bull market and analysts are now pointing to another potential Wycoff accumulation pattern that could see Bicoin price soar again.
RSI looks for a potential test and breakout to the 57 region before getting Overbought.
The divergence looking to test the Zero regions for a possible bullish divergence with the histogram looking green again after a short time of testing the negative region.
ETH/USD has been on the same course with regards to price action as BTC/USD and has shown similar patterns with its last rally which potentially could see an upward movement to 9k region, while this solely depends on market sentiments, price actions and other fundamental factors affecting Bitcoin at the moment. Analysts believe that ETH/USD didn't really achieve its potential price targets during the recent pumps in price over the last few months due to problems surrounding the delayed scaling to ETH2.0 from its founder Vitalik Buterin. The aforementioned price targets are backed by the Elliot Wave Principle.
The ETH/USD chart speaks volume. A closer look at the chart shows some form of unexpected volatility on the 25th of June 2021. When anything like this happens, they can be traced by some forms for fundamental analysis. As much as we know that these charts are a representation of the actions and reactions of traders, it gives us an insight into what has happened in the past, if there is any noticeable repeated pattern and helps us know what we should likely expect in the future. ETH/USD had a daily open of $1828 and is set to close above that price at the time of writing, having recorded a daily high of $1892.
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ETH/USD is in a very indecisive position in the lower time frames as constant chop off its prices has been prevalent and looking to continue its bearish setup, however this could be easily overruled if BTC/USD decides to rally to the next resistance levels which is looking likely to happen.
RSI: RSI rejected at the local resistance which could signal a further drop off from current prices in the near future.
MACD: The MACD passing a similar message to the RSI is well below the Zero mark still looking to break the trend. The histogram leveling up for the third consecutive time.
The popular pair saw a relief rally in the past few days to the ($0.7) region before declining further as it still failed to test the 200 MA and breakout from its bearish ways for weeks now. The bears generally have a strong hold on the market as it stands and will surely affect the prices of others pairs which means we could potentially see further decline in prices if we don't get another rally from BTC/USD to suggest that the bull are taking over once more, however a further push to the upside could see us test the 200MA again.
RSI indicates a further breakdown after the test from the resistance from the 38.61% LEVELS. Currently looking in the downward path suggesting a further fall in price. However, the current RSI level is at an oversold point.
MACD looks bearish with the curves, although converging, looking to move in a similar downward direction. The histogram can testify to this. This is however still a point below the average price.
This pair still seems to be struggling with the base. Could this be because of the series of events that happened over the weekend? Although BCH/USD has been trading well above the last support level at $387.33, No clear upward trend is seen just yet. We expect the pair to keep trading above this support level.
However, given the current behavior of the chat on the daily time frame, we could be expecting a little retracement back to the $374.61 bench mark. If the pair successfully rejects the retracement at that point and bounces back, we could be looking at some big gains coming in no distant time.
However, if the pair fails to reject the retracement at that point, there could be a breakout in the downward direction.
BCH/USD opened yesterday at $460.17, went a bit low to $446.92 but closed on the high side of $477.73 making up a +3.78% 24 hours gain. The bulls on this pair are showing a great deal of strength holding up the $400+ benchmark, we do not know for how long they can keep that up for but from several indications, the bears on this pair seem to hone more strength in the current market condition.
The RSI is looking indecisive giving a straight face on the 37.79%. This is clearly coming from an oversold point. On or more candle sticks will reveal the next behavior of the pair.
The MACD shows some forms of convergence with the bulls slightly having an upper hand. The histogram also has managed to move a little bit to the green region but not with a great strength. The MACD remains negative, indication that the pair is still trading below the average price.
This pair has received quite less attention out of the pairs we have discussed so far and it's quite reflected in the price action as we can see LTC upholding the $100-$120 support region strongly, while still trading under the 200MA it is still very bearish like the other pairs we have discussed.
It’s important to know that a rally in Bitcoin can easily trigger a massive move to the upside as we discuss the indicators next.
The RSI on the daily timeframe still projects LTC/USD at an oversold position with the bulls making efforts to move the pair farther than that region. Although still bearish in the short term.
The MACD line remains negative and convergent. The curve looking slightly up might be an indication that the bulls are about to move the pair up, The histogram is a testimony to this action as it is slightly in the green region already.
Correlation
Bitcoin leads a healthy upsurge and alts following with massive gains show that BTC/LTC has the highest correlation coefficient with BTC/ETH and BTC/BCH at the same level. The market movement so far has been a leadership/followership kind of thing.
