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Bitcoin and Ethereum Market Analysis – 16.08.2022

Bitcoin continues its effort to break above the $25K resistance level, retested 25k for the first time in 2 months but couldn’t hold above it. Overall, this is an encouraging action.

The new 60-day cycle is in a trend move with little selling resistance. With momentum stalling at key technical levels, a move above the $25k level will reduce the bullish pressure and reposition the new cycle to end in a right translated structure.

From the long term spot position, nothing substantial to worry about, it is all about how we approach the crypto market and the discipline we put in to meet our expectations.

BTC daily chart shows the price action holding up well, and a short-term move higher in the new cycle, becoming more likely now. We have a nice setup trading above the 10-day MA to recapture $25k, which has all the hallmarks to cause a massive rally towards the $30K supply zone.

Still early in the new cycle, we may go sideways for a while though, up till mid –cycle point for more upside possibilities. In overall, we still have to wait for that upside confirmation to get in to our long term position.

Sample my trade: Target around $25.2k hard stop at $22.5. Risk is 2.1% of capital. Don’t get married to it and respect stops + size. I took a long position for a trade, because we are still early in the 60-day cycle. Of course, nothing has changed in my long spot position, only going below $19k gets me re-hedged.

Chart 1. A nice setup trading above the 10-day MA to recapture $25k and giving the price action a bullish outlook.
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 positive reaction to a long term pull back. We’re trading above the 10-week MA, which is a confirmation that, the new 60-day cycle low has found support.

We still have momentum to the upside even though, it’s not yet strong. Still have to watch for that one more pull back that could form a clean 60-day cycle low (double bottom).

We’re at that prominent spot where BTC could continue to move up from here or could test or break recent lows. Still room for that one good move higher especially, if it can break above the recent high around $25k. This has become the next major resistance.

Chart 2. The BTC trading above the 10-week MA, which is a confirmation that, the new 60-day cycle low has found support.
Source:bitcoin.live , BTCUSD Chart by TradingView

Ethereum
Ethereum is looking a lot better in terms of volume and momentum. Meanwhile, for the second largest cryptocurrency, Ethereum gained approximately 13.8% before hitting a resistance barrier at $2,000.

On the weekly timeframe, the narrow range between $1,892 and $2,000 is an indication of a battle between the bulls and bears that are fighting for dominance.

The real key area to watch is $2000 resistance level; not only will it give the price action a cleaner structure but also reposition ETH for a blow-off move.
Let us be a little patient here and watch how the market unfolds.

Chart 3.Ethereum is looking a lot better in terms of volume and momentum after gaining approximately 13.8% before hitting a resistance at $2,000:
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