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Bitcoin and Ethereum Market Analysis – 14.05.2021

The long-term picture for BTC remains strong but the short-term price fluctuations may cause large drawdowns to portfolios. Hence, you should watch the price action closely and follow trading rules without getting sucked into trades driven by emotions.

Elon Musk’s tweet on May 13 may have led Bitcoin price dropped by 17% to hit a new low at $46,000. While Musk’s decision is a short-term blow to the sentiment of the market, it is unlikely to change the course of the BTC markets altogether because the institutional demand for BTC remains high.

While Bitcoin’s bull market is trying to fend-off the bears, the Altcoins indicator- Ethereum has managed to sustain the momentum and propel the price above the $3,555 key level after a recent dip.

BTC daily chartmay be showing a cycle low in place or it may be near, even though, the bulls are attempting to defend the support.

We have to be conservative and defensive here, and take opportunities when they come. This decline is not unexpected, it’s something we have been looking forward in other to complete the next cycle low around June, and this looks to be playing out. There’s no short cut to the market, we have to respect the trend as the consolidation phase could last more than two months before any major move.

I won’t be surprised if we have up to 20% decline to around 43k to complete the 60 Day cycle low. We should be mentally prepared for any possible outcome and not driven by emotions here.


Fig.1.
Shows a cycle low in place with a bearish head and shoulders pattern.

Source: Paid Content by Peter Brendt and his partners at bitcoin.live

BTC weekly chart shows a 20-Week MA fully stretched and that could no longer sustain the trajectory movement. I could see the range-bound constructions allowing the market to recharge itself, even though, the 10-Week MA is trying to catch up with the price.

In that regard, the critical indicator to watch is the 20-Week MA, which should hold Bitcoin’s price from dropping further.

It might take a long time for this correctional phase to be over, but expect bullish trend in the long run.

Fig.2. the range-bound constructions aligning with the 20-Week MA. Source: bitcoin.live

BTC monthly chart shows six green candles in a row fully stretched before the consolidation. An indication that, we’re due for this phase as we look forward for a three months of consolidation to refill the market to go higher.

When we’re in an open market that’s fully stretched, expect what we’re getting right now to prepare the market for the next uptrend.

Overall, it’s bull market, the 4 years’ cycle looks beautiful and everything is aligning perfectly right now but requires little patience.

Fig.3. Six green candles in a row fully stretched before the consolidation. Source: bitcoin.live

Ethereum
Ethereum is still holding on well in spite of the little price reversal. Luckily for the bulls, the ETH/BTC pair has held up nicely during this latest drop, finding support in the 0.065 area. The uptrend remains intact as we could see from the strong rebound today. Ethereum is in a momentum-driven uptrend at the moment.

Fig.4. ETH/BTC pair has held up nicely during this latest drop in BTC price, finding support in the 0.065 area. Source: bitcoin.live

Top Takeaways
BTC – Moving towards next Cycle Low
ETH – Possible short-term top

🔴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