The correction in the market has been stopped, for now, delivering a 45 % drop since the all-time high level of $69,000. The price, after hitting a local bottom around $35,000, starts to rebound at $36,500, showing that this consolidation point would work for the Bitcoin market until there is another spark that will deliver better results in the charts.
The consolidation zone will continue to dominate the market and the expectations lay on the stability side for the next period. As observed in the previous consolidation period, between June and July 2021, the market will try to find paths towards a new direction. The negative scenario will deliver Bitcoin’s price lower than $30,000, a signal that the market is practically inactive and the institutional investors will probably head out of the market.
The $30,000 point is a clear point when the first institutional investors entered the market, creating enough market depth to absorb any bearish thoughts. The positive scenario will start to build another bullish trend that will be marked after a break above the $40,000 zone. Until there is a decisive move towards anywhere above or below the abovementioned points, the price will continue to remain on the same levels.
The moving averages have been positioned in bearish formation, indicating that we are still not over the bearish feeling. The trading volumes skyrocketed on Monday evening, indicating that there is a fierce war between bulls and bears that want to establish the next position in the Bitcoin market.
As you can see in the Bitcoin Price Analysis image the day trading window in the BTC market shows that there is a major support – consolidation point around $36,000 that will probably lead the trend for the next days. We can see that during consolidating moves, there is a strong point that the market tends to return.
If we have a similar scenario in this situation, the day traders will need to focus on the volatility around this point and try to exploit it as many times as possible, until this particular trend is over.
The bearish market didn’t leave the Ethereum market untouched, dropping the price around 50 % since the all-time high level at $4,900. At this moment, the price is swinging around $2,400 but we need to analyze a couple of points in the meantime.
After the all-time high level, the market was trying to consolidate powers around the $4,000 point but the structure collapsed when the crypto market was turning bearish. The bearish trend was stopped in two points, showing that the Ethereum market has some market depth that could build support zones for future use.
The first step lay around $3,600 while the second step lay around $3,300 before the third and final step at $2,500. All of the above stops show that there would be equivalent actions on the bullish end when the cycle will turn again towards the other way.
The moving averages have formed a negative position since the start of 2022, indicating that the bears are not away from the market. The trading volumes went high during the last few days, confirming the sell-off dimension in the crypto market.
In the short-term view, we should note that the price drop from $3,400 to $2,400 happened during a week, showing that the market has no market depth in the space between it. This lack of market could make the market weak in future situations as there would be more confidence in the market in the future.
The expectations for the short-term period lay on the fact that Ethereum’s price will remain above $2,000 and the $3,000 will be the first recovery point. As the market remains volatile, price fluctuations will be most affected by external powers like Bitcoin dynamics and short-term trends. It’s well known that the alt-season begins when the Bitcoin market reaches its high level. Accordingly, the bearish season for altcoins begins a few moments after Bitcoin’s one.
Ethereum has tried to separate its dynamics from Bitcoin but this is not possible all the times.
In the day trading window, we can observe that the market is trying to consolidate again around the $2,400 point, proclaiming it as the “return point” for the short-term period. The expectations for the next days will be a steady move around this point until there is another breakout, possibly correlated with a corresponding move in the Bitcoin market.
The volatility exploitation remains hard in this period but the majority of investors are waiting for the next wave to ride in the Ethereum market.
MACD (Moving Average Convergence Divergence) index has been in the “red” area for the last 3-4 days, showing that the market momentum has been negative and a potential turn in the market would be predicted through this index. The signal will become positive once there is enough traction in the market for bigger changes in the momentum.
The RSI (Relative Strength Index) index has been steadily moving in the “buy” area, indicating that the dip is here and all investors looking for a DCA approach should make a move and increase their positions in the Ethereum market. We will be looking at the index for the next few days to find more useful signals.
As seen in this Bitcoin Price Analysis the BTC market has been stabilized over the $35,000 area, showing that a similar scenario could be replicated within the first months of 2022. The intensity will be determined from the institutional investors’ approach and how they will behave in this situation.
On the other hand, the Ethereum market is experiencing a similar correction that makes investors nervous about the next day and how they would position themselves in terms of risk management and portfolio allocation.
Read our previous Bitcoin Price Analysises here!
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