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Bitcoin and Ethereum Market Analysis – 14.06.2022

The capitulation in cryptocurrency market continues. Bitcoin suffered the largest single day drop since march 2020, as the price dropped by almost 30% in the last 7-days.

Bitcoin is extremely oversold and short-covering rallies are possible at any time. I have NO desire to attempt being long for a corrective rally. The downtrend is well entrenched. Should further capitulation develop I think major support at the 2014 high around $13,000 is likely.

I remain long 40% — this is my HODL position and committed to the long-term narrative in Bitcoin. I will pitch additional 20% when BTC penetrates $28k.

All investors/traders need to know how much pain they can handle on HODL positions. I can handle pain on the 40% position to zero.

BTC daily chart shows a clean cycle low with massive liquidation and selling-off. It can be seen that the price is ranging within the lower borders of the descending channel. After consolidating for almost a month, the price has finally been able to print massive bearish candles and broke the lower barrier of the sideways-moving range.

Although our overall sentiment remains bearish for the upcoming period of time, we will be looking into opening short-term BUY positions.

Upside follow-through could spell some optimism ahead, let us place our focus on finding the bottom.

Chart 1: shows a clean cycle low with massive liquidation and selling-off, resulting to the price ranging within the lower borders of the descending channel.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

BTC weekly chart shows a bearish chart pattern below the Jun 2021 low. The price has lost all the support levels with the area of previous support now turned resistance that aligns with the 0.618 Fibonacci retracement level.

Bitcoin has been dropping for a while and there are clearly no bullish indicators right now.

I don’t have any doubt to see BTC back in mid-twenties but we need to wait for the confirmation. We may not see a new ATL soon till late 2023 or early 2024 but expect a counter trend move.

Chart 2: a bearish chart pattern below the Jun 2021 low.
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
ETH/USD has broken down completely from the descending triangle, deep into the long-term buy zone. Ethereum price set a bear flag in late April and breached the lower trend line on May 4. Since then, ETH has crashed 52% to reach the forecasted target at $1,200.

If buyers step in and purchase ETH at a discounted price, there is a chance for recovery. A quick flip of the $1,401 hurdle into a support level will indicate a resurgence of bullish momentum. This development could see Ethereum attempt a rally to $1,730. I sit and wait patiently until I see some form of reversal on significant volume 1st.

Chart 3: ETH/USD has broken down completely from the descending triangle, deep into the long-term buy zone.
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