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Bitcoin and Ethereum Market Analysis – 26.05.2022

Bitcoin and other major Altcoins are stabilizing after the cryptocurrency space got slaughtered. The momentum is still to the downside as significant pressure mounts on BTC right now.

Relatively early in the 60-day cycle and we don’t know the direction of the market right now. Bitcoin has remained around the critical support for more than two weeks despite all the fear and doubt in the market. It appears, investors are partially sitting on the sidelines in an attempt to find a directional change.

Preserving capital and making the right decision is what is needed. We’ve lost the key levels and the trend is firmly down from the intermediate time-frame (since November 2021 till date).

BTC daily chart shows the price action being underpinned within a descending triangle which has come under threat as we have seen an attempt to trade below the formation.

This pattern, which is typically bearish, indicates that BTC is oversold as the price continues to make lower highs. The recent break below the underside of the descending triangle at 28,630 (acting as a strong support) brings the recent spike low of 26,590 into focus. In the event of continued bearish momentum, things could get very ugly for bitcoin and alts very fast.

It’s still early in the 60-day cycle and If we are to see a move higher from here, the first test appears at the 31,500 level followed by 32,940.

Chart 1: The price action being underpinned within a descending triangle.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

BTC weekly chart shows a bearish structure with 9 red candles in a row. BTC has been stuck inside the gray channel, and the last couple of days, that channel is contracted to form range within it.

In a bearish scenario, the worst kind of market can occur (bear that in mind). We are already in that outliner situation where it can get worst. Long term I’m a buyer and holder below 30k.

The question is… which way we may go now?

Scenario 1: Trend Reversal: For the bulls to take over, we need a daily momentum candle close above the upper bound / gray zone.

In this case, a movement till the upper resistance zone 38k – 40k would be expected.

Scenario 2: Trend Continuation: For the bears to take over, we need a daily momentum candle close below the lower bound / gray zone.

In this case, a movement till the lower demand zone resistance 18k – 20k would be expected.

The sentiment is negative; so focus on your position and intention.

Chart 2: Bearish structure with 9 red candles in a row as BTC has been stuck inside the gray channel.
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
Ethereum has broken down through its local support while BTC is still in the range. Things could get worse here too and the key level to watch is 1700. It needs to get above 2k to get Ethereum on the positive side.
It could reverse higher to a cycle high. The longer the consolidation, the more aggressive the movement would be after the breakout. So be prepared!

Chart 3: Ethereum has broken down through its local support as the bears are causing more havocs. 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