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Bitcoin and Ethereum Market Analysis – 10.12.2022

No new capital coming into the crypto market at this time and that’s the reality we face. Little activity is going on and it’s going to take a long time for funds to start flowing into the market. Amid the collapse of FTX and the crypto market, the funding rates dropped deeper in the negative region, showing values previously observed during the Covid-19 crash.

Bear Markets are a time to do less trading and to use this time to reflect on who you are, what your goals are, what you’ve learned, what you can do differently next time, and to prepare for the next opportunity. Make your fortune by building your source of income and use trading and investment to leverage or multiply things up.

Looking at the BTC daily chart we see 8 days of side-way action, but the bullish narrative for now has held well. End of the cycle low coming, beginning from the early 2023; the price action is currently consolidating above the $16K level key level and edging towards the 10-day MA.

We have few sellers left and few buyers in the market and we shouldn’t respond to any little move in either direction. Let’s allow the market to reposition itself.

What the market needs now is BTC to bounce back to $18-19k level to enable more funds pump into the market. If not the FTC saga, BTC could have been consolidating around $21-22k level now.

All we need to do is to load up with a long-time horizon in mind and wait patiently for that one big move that will restore confidence, for cash to flow into the market.

Chart 1. BTC price consolidating in a tight range against a long-term descending channel
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

The BTC weekly chart shows the price action edging closer to the upper range of the large descending channel, consolidating a little below the 10-week MA. We’re not in a clear-cut defined bear market trend as we were before. I believe, it’s firmly transitioning to end the 4-year cycle low in January.

The price is currently located in the middle of the channel, which means that there are high chances to see the BTC going above the bear channel even though the path of least resistance remains to the downside. This pattern is typically an early sign of the exhaustion of the bearish trend and points to a probable bullish reversal if a breakout to the upside occurs.

One final move lower will end the 4-year cycle low; then we begin to build a base higher.

Chart 2. Price action edging closer to the upper range of the large descending channel
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
ETH has held clear above the summer lows, consolidating well with relative strength above the $1,200 support area. Lots of volatility and hard to pick a bottom is what we’re facing now.

Let’s see whether the price will spend more days rising than declining. If that happens, expect a counter trend move that will restore confidence. I believe that, there will still be another low to end the 4-year cycle low before any counter trend move.

If Ethereum can establish $1,200 as support and does not go below this crucial mark, it could retest $1,400, which overlaps the 10-day MA. Possible increase in demand may break the horizontal outlook and accelerate price action towards the $1,400 – $1,450 area.

Chart 3. Price action consolidating well with relative strength above the $1,200 support area
Source: bitcoin.live , ETHUSD 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