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Bitcoin and Ethereum Market Analysis – 18.07.2022

Following strong weekly double-digit gains from Bitcoin and Ethereum, cryptocurrency market cap has hit $1.02 trillion (first time since 6 months ago). Price of BTC/USD climbed close to a one month high, rising 5% in the last 24 hours to $22,300.

The new cycle has been fully confirmed; so getting into that timing band for the top of the first half of this 60-day cycle is in the horizon. Decent spot for a higher high formed even though, we’re not out of the woods yet.

Overall, this is an encouraging action and this has pretty much gone to expectations from the cycle low. There will be other opportunities, but we also want to make sure, we have the uptrend fully back.

BTC daily chart shows the price action well above the 10-day MA, suggesting a weakening bear trend. We have a nice setup to recapture $25.2k, which has all the hallmarks of a resumption of the primary bull market.

Still early in the new cycle, we may go sideways for a while though, up till mid –cycle point for more upside possibilities.

Target around $24k hard stop at $19.5. Risk is 2% of capital and just a trade, 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 $17.6k gets me re-hedged.

Chart 1. Significant nice setup to recapture $25.2k, which has all the hallmarks of a resumption of the primary bull market
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

BTC weekly chart shows a long green candle, ending a 60-day cycle low above the $22k level. In this scenario, a solid case could be made that the bull thesis is back with this slight new high.

Let’s see whether the price will spend more days rising than declining. If that happens, expect a counter trend move of the rising portion of the 4-year cycle.

We need to be patient and wait for more confirmation that, we’re breaking out of the declining phase of the market.

Chart 2. A long green candle, ending a 60-day cycle low above the $22k mark.
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
Nice move, Ethereum is outperforming BTC at the moment; up 22.6% on the week and 5.5% in the past day. Held those lows and now gone up on a counter trend move. This is the first time, in 4 months, that #ETH has broken into a bullish trend, printing Higher Lows and Higher High.

Having turned January 16 swing low -$3150 into support and broken the descending triangle, expect a quick rally up to $1,730.

The real key area to watch is $1,730 resistance level; not only will it break the downward trend 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 outperforming BTC at the moment; up 22.6% on the week and 5.5% in the past day.
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