Bitcoin and Ethereum Market Analysis – 14.02.2023
Bitcoin has been holding up well, and a long-term move higher in the new cycle is becoming more likely now. A whole lot of progression here to the bullish side and let’s hope, it will lead to a right translated cycle.
The $25K price region has been the most significant barrier in Bitcoin’s path during the last eight months. Most recently, the price attempted to get to this level but failed, resulting in a correction. However, after an impulsive surge, a correction phase is essential for the continuation of the rally, which is in-line with the 4-year cycle price action.
The first leg of a downswing has begun, but further confirmation is required to know where BTC is headed. Whales, on the other hand, are on the move and poised to buy the dip. If that happens, let’s see what impact that could make on the overall market.
The daily BTC chart shows a pullback to the broken descending trendline and showing a clear sign of exhaustion. We’re in Day-45 of the 60-day cycle, in what seems to look like the 60-day cycle low setting in.
Be mindful of the decline and any more down side action is a perfect opportunity to buy the dip. During these times you have to be ready for both sides. A low at $20.3k remains the primary support level and a distinct possibility.
Overall, the long timeframe does appear promising for Bitcoin, as the consolidation is initiating another spike.
Chart 1. A pullback to the broken descending trendline and showing a clear sign of exhaustion.
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 3 weeks (3 candles) Pull back, still above the 10-week MA and still trending to the upside. Although, the momentum is stalling at key technical levels, the price is well above the 10-week MA.
Still open to go 60-day cycle low but I see it go sideways for a while up till the next early cycle point for more upside possibilities.
For short term trade, target around $23.6k, hard stop at $20.3. Risk is 2% of capital and don’t get married to it and respect stops + size. I took a long position for a trade, because the price action will spend more days rising than declining. If that happens, expect a counter trend move of the rising portion of the 4-year cycle.
Chart 2. Price is above the 10-week MA in the timely band and still trending to the upside.
Source: bitcoin.live , BTCUSD Chart by TradingView
ETH/USD
The same structure is with Bitcoin as Eth/USD pair appears to have entered a correction. However, the momentum has weakened, retesting the upper trendline.
There’s a possibility that the price may turn up from the two crucial key levels- $1,600 & $1680 to end the current decline. More factors suggest the uptrend will continue as opposed to any further pullback.
If the price continues to consolidate in a tight range around $1,580, it will enhance the prospects of a break above the overhead resistance at $1700.
Let’s be patient, a good timely setup is forming that may lead to full allocation back probably in March.
Chart 3. that, the momentum has weakened, retesting the upper trendline.
Source: bitcoin.live , ETHUSD Chart by TradingView
ETH/BTC
ETH/BTC has established a range near the peak of the bull market.
Still bullish, becoming tighter and it’s positive for Ethereum in the price cycle.
From the long-term perspective, I still believe, it’s ideal to hold that 50/50 mix between Ethereum and Bitcoin for more upside possibilities.
Chart 4. ETH holding up fairly well within the tight range.
Source: bitcoin.live , ETHBTC Chart by TradingView
