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Bitcoin and Ethereum Market Analysis – 19.11.2022

Bitcoin was able to avoid further losses over the weekend, despite the sentiment across the cryptocurrency market remaining unpleasant.
The cryptocurrency has mostly traded around that $17,000, with a few unsuccessful attempts to overcome it. The last such occasion came on Friday, but the bears stopped bitcoin in its tracks.

The downtrend is well entrenched as investors are moving their money from centralized exchanges(CEX) to self-custody wallets. Bitcoin is oversold and short-covering rallies are possible at any time. A low at $14k remains a distinct possibility and will present itself as a good buying opportunity.

Therefore, we have to monitor the price action closely and look for more clues as to the resumption of the bull trend may be within weeks…

Looking at the BTC daily chart we see a bit of consolidation and the price action has been stalled, temporarily muting the downward move. This price action has formed a triangle pattern after the recent shakeout and is about to break it.

The BTC market has entered a new phase of short to mid-term consolidation as the price dropped significantly. Nevertheless, during the consolidation phase, the price might retest the $18K-$19K region which will be the most probable scenario for Bitcoin in the short term. I see the BTC price going back to that long range of consolidation -$19-20k once we establish the bottom of the bear market in the next 60-day cycle. It could take a whole 60-day cycle to accumulate in that range.

If we look at previous cycles retracement from the top, we notice 75% to 73% retraced; apply this to the current cycle you discover that the bottom should form around $13.5k – 12k. I don’t think it’s a bad idea to accumulate in this area.

Chart 1. A bit of consolidation and the price action has been stalled, temporarily muting the downward move.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

BTC weekly chart shows it making a move to consolidate through the bear channel. Things will surely be smooth sailing if BTC breaks out and make a small rally toward the $18.5k range.

Although BTC/USD is still trading over 18% lower for the month and over 75% lower since reaching the November 2021 high, we’re expecting some consolidation to happen around the local area before opening BUY positions and aiming for the upper boundary of the channel.

I don’t have any doubt to see BTC back in twenties but we need to wait for more consolidation. What we’re going to see in the coming days is a counter trend move in the bear market.

From the long-term perspective, we need to be defensive and focus on the next bull market.

Chart 2. BTC is making a move to consolidate through the bear channel.
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
Ethereum is acting a little bit weaker than BTC having retraced more than 1.5% (at the time of writing) as prices briefly did below $1200.

The total evaluation for the ETH asset is still bearish and very similar to the BTC chart. Most importantly, there is a rising wedge formation supported with decreasing volumes.
ETH’s first important move this coming days will be to stay above the $1,200 support. In addition, a move above the short-term key level of $1,300 from a possible increase in demand may break the horizontal outlook and accelerate price action towards the $1,450 – $1,500 area(but this is less anticipated).

Chart 3. Ethereum acting a little bit weaker than BTC and struggling to establish support at $1,200.
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