Bitcoin and Ethereum Market Analysis – 07.03.2022
The last 20 days of the 60-day cycle have been on the decline which give the entire market, a bearish outlook. Not a lot of change since this present cycle began and I see the dominant downtrend exceeding the March 24-time frame. If BTC goes below $35k, it’s possible that the next 60-day cycle will continue as a left translated cycle pushing price action even lower.
This recent decline may be the start of a larger degree decline into the March time-frame, that may later bounce of the 10-dma and move to a new high for the Cycle. The recent happening in Ukraine may play a major role in further declining Bitcoin.
Like I said in my previous analysis, the most important thing to understand is that in trading and investing, there is a time to be making money and a time to be protecting capital. It’s very important to know when it’s time for each one.
BTC daily chart shows the two-third of the cycle structure since November high, is in the declining phase that may consolidate for a longer time. Considering the Bitcoin volatility, we don’t know how far it can technically decline as the dominant downtrend may still test lower lows.
The 36-35k may be inevitable and let’s hope, that level may provide a good support to bounce back. The double bottom of the 60-day cycle has been formed as the price action is still below the 10-day MA.
Watch the downtrend, that’s where the risk is, in the intermediate time frame. We can always pick out position later on if the bull market is back on track.
Pic.1: The double bottom of the 60-day cycle has been formed as the price action is still below the 10-day MA.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView
Looking at the BTC weekly chart we see a big rejection as the price is still below the declining 10-week MA. The rejection shows, it may still retest the lows before we could have any clear intention of breaking out of this downward channel.
If we follow the cycle structure, the next 60-day cycle will continue in the downtrend, probably consolidate much longer than expected.
You have to manage your risk if you’re in any form of leverage, honestly this is not the time to push trade.
Pic.2: The chart shows a big rejection as the price is still below the declining 10-week MA.
Source: bitcoin.live , BTCUSD Chart by TradingView
Ethereum
ETH/USD is a lot weaker considering the move at the mid-cycle did not double top unlike Bitcoin. The 10-day MA is trending lower and has lost support at $2600. It still has the possibility of dropping significantly.
Don’t be biased in your position. It’s important to understand the time-fame to help you make an informed decision.
Pic.3: The 10-day MA is trending lower and has lost support at $2600.
Source: bitcoin.live , ETHUSD Chart by TradingView
