Crypto Radar is a regular dive into the field of technical analysis combined with our view on the Macro and Micro environment. These updates will help paint a picture from a day traders’ perspective on the potential movements we are likely to see in the short to medium term. Note this is for demonstrational purposes only and not financial advice!
Bitcoin
Following up on last weeks technical analysis for Bitcoin we can now map the progress of the chart setup. See the below description for the TA
Top pink bar ($60k) is the resistance, bottom pink bar ($43k) is the support
This is the daily chart
Downward red funnel is the bear path that Bitcoin broke out of
The Wealth Gap View: Bitcoin is now consolidating in a rising wedge which is drawn as the closing triangle above. We are now likely to see a break out (up) or break down (down) in the price action over the next few days. The direction out of the wedge will lead to the next set of support or resistance steps regarding price. Around $43k would be the downside first test of support if it falls. If Bitcoin moves out of the wedge to the upside we will rapidly be breaking above $50k into the resistance area of around $54-55k.
We are leaning more towards a Bullish break out (to be confirmed next week) even though rising wedges statistically tend to be bearish. Momentum in bull markets however can overturn this average in the short term.
Bitcoin Growth
Below is a juicy chart that shows the monumental growth of the Bitcoin network (blue) in comparison to Gold (orange), US Stocks (green) and US real estate (red). We decided to drop it in this week as you can see in the top right that we are at a major turning point here where BTC is about to become more valuable than each of the others. This is significant as it will trigger many fixed income and commodity investors to perk up and take another look at this Bitcoin thing! We call this the Golden Cross and see it as a Crossing the Rubicon moment for bitcoin. It gets even harder to ignore and disregard Bitcoin once this level is behind us.
Ethereum
The second largest crypto by market cap Ethereum (ETH) is also showing significant signs from a technical analysis point of view of strong chart movement coming through soon. Another rising wedge with a Break out or Break Down pathway will likely arise in the next few days.
Top pink bar ($4,200k) is the target resistance
This is the daily chart
If Ethereum can break out to the upside and hold then we will be chasing resistance into the purple box at around $4,200. Chasing its all-time-high is the new directional pathway that is forming. We will keep an eye on this over the next few weeks.
We are mid way through a bullish crypto cycle that will likely bring mania in Q4 of this year so if you are looking to invest and take a swing at this potential then sooner rather than later is likely a better stance.
Till next time
The Wealth Gap