Cryptocurrency Weekly Cycles Report- May-09-2023
Bitcoin has refused to fall into a deeper low of the cycle-low timing window, but rather undergoing a sideways consolidation within the uptrend. Although, a lot of indecisions and short-term distribution is going on, it’s not yet a failed cycle, still trending in the right direction.
We’re in Day-14 of the new 60-day cycle, still room for further upside expansion towards a firmly Right-Translated Cycle. I don’t think we should worry about the recent pull back, unless $26,900 is taken out. In such a case, I would say, the 60-day Cycle has topped.
For now, it’s still inconclusive situation. But if it trades above $30k, I’ll have to assume we’re in the early phase of a cycle with the low at Day-45 of the last 60-day cycle.
BTC/USD daily chart shows a much entrenched bullish structure with the moving averages trending high even though bearish attention has developed. Still very bullish on the 4-year cycle as the uptrend on the intermediate term is still valid and should be respected.
I prefer the pullback for clarity, but seriously with these bank failures and actually how negative people still seem to be, the pain path is that bitcoin will shoot higher here and leave many people behind.
A further minor retreat wouldn’t be surprising given the significance of the hurdle at the $30k level. Beyond the short term, BTC/USD needs to clear this key level to sustain the momentum and push to $34-$35k area before the end of this 60-day cycle.
Let’s see if the price will spend more days rising or consolidating at 27k area, above the $30K Psychological level which is the more probable scenario at this moment.
Looking at the BTC weekly chart, we see no clear breakout in either direction as the price action has been sustained above the $27,000 level, making it key support for Bitcoin. Having said that, momentum, though still very bullish, has eased a bit in recent days, as the attached weekly chart shows.
Though, the weekly cycle low event may take time to grind its way out, we don’t want to be losing our position yet, again the weekly cycle uptrend remains strong and dominant, at-least for now.
ETH/USD has a similar look like BTC, similar dynamics in play. BTC is the driver of the cycle.
Ethereum also hovered close to a support point of its own in today’s session, as overall market sentiment remaines uncertain.
Although longer-term momentum is slowing, the fact that the 10-day MA is trending high, means an upwards crossover could lead to a bull run. Should this occur, there is a good chance that the target for bulls will be to recapture the $2,000 point.