Trusted cryptocurrency platform
Kraken.com - (US & INT)

Bitcoin and Ethereum Market Analysis – 05.01.2023

Bitcoin and some key altcoins are showing signs of starting a sustained recovery and over the next few days will determine if this can establish an uptrend.
BTC is currently testing a key resistance zone, and the outcome would likely determine the mid-term trend for the crypto market. The price has shown that BTC has the least volatile conditions in its history and we’re beginning to have more buyers stepping in to defend the price not to dip further.

I’m happy the selling pressure has reduced and this has put the entire market in a renewed hope of bouncing back but it’s not going to happen overnight. If you are an investor, you can’t let the day-to-day emotions impact your game plan.

Patience will determine whether you will be rewarded or not.

BTC daily chart showing 3% rise (since the start of the new year) is closing in to disrupt the downtrend of the last few months, as the price is a little above the 10-day MA ($16,800 mark). The daily chart is holding on well and now in Day-56 of the 60-day cycle. The more it trades sideways, the more bullish it becomes.

I was expecting a cycle low up to $15k heading down to September cycle low; that would have prepared us for long in the next 60-day cycle (from a trade stand point of view). I want to see the breakdown to give me that confidence to go for long.

Where we stand on the 60-day cycle: I’m encouraged by the low selling-off.  I’m looking forward to a right translated cycle in the next 60-day cycle. I’m very optimistic that the bear market may be over in the coming days irrespective of what happens in the stock market.

It’s going to take time and trust to rebuild, the moon-shot is not going to happen overnight.

Chart 1. 3% rise is closing in to disrupt the downtrend of the last few months as the price is trading little above the 10-day MA
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

BTC weekly chart shows a move above the descending channel and getting more strength for a counter trend rally. This has repositioned the entire structure in favor of bulls.

We are expecting a move back to the 10-week MA. I’m looking at the next 60-day cycle to be more of a rally-up but we shouldn’t rule out a possibility of having a significant drop. Any such move will be a timely band for a mild uptick.

I’m pretty sure, BTC will reposition to take advantage of the phenomenal 13 months decline of the 4-year cycle to usher in a strong bull market.

Chart 2 shows a move above the lower channel of the downward trend and getting more strength for a counter trend rally:
Source: bitcoin.live , BTCUSD Chart by TradingView

ETH/USD
ETH/USD is holding on well just like BTC, a strong start of the new year. Forming a higher high within a short time; looking forward to a new 60-day cycle. Sentiment remains somewhat marginally bullish, as ETH continues to trade above its 10-day MA ($1,230).

The next level to watch on the upside is $1,300, where the bears may mount a strong resistance. All ETH/USD needs is to keep the momentum to rally back to $1,400- the midpoint of October’s trading range.

Chart 3. ETH continuing to trade above its 10-day MA ($1,230) even though the volume is low
Source: bitcoin.live , ETHUSD Chart by TradingView

ETH/BTC
Still performing well as you can see from the chart. ETH/BTC has broken above the symmetrical triangle. This is one of the few moments, the altcoin has held up so well against BTC during a downturn. Quite above the mid-range and so deep into the 4-year cycle.
Given the resilience of the ETH/BTC, I think ETH will perform well in the next 60-day cycle, surviving through the traditional bear market and its escapades.

Chart 4. ETH/BTC is quite above the mid-range and so deep into the 4-year cycle
Source: bitcoin.live , BTCUSD Chart by TradingView

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service