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Bitcoin Market Analysis – 27.04.2022

BTC chart is not looking nice as the BTC/USD pair crashed to the lowest level since March 2022 as the global market risks rose. It is trading between $38.5k- $39k, which is about 20% below the highest level this month.
The fact that volatility is likely to ramp up again as we head towards the end of this 60-day cycle, means you should not expect any big counter trend move at-least for now.
Which direction the market goes remains undecided, but the higher low in February relative to the yearly low in January suggests, we may not be out of the woods soon.
This is not a good trading environment as I encourage you to be as underweight as possible to protect your capital. Bitcoin continues to be weak and as long as BTC is below 40k; it’s not a good risk-reward for short term.

BTC daily chart shows a mid-cycle failure and the price action trading below the 10-day MA. BTC right now, is in declining phase of a 4-year cycle which might lead to a failed cycle. All the permutations that, by May time-frame, we should be heading to a right translated cycle has been bridged.
We’re in the 2nd half of the 60-day cycle, so a move back to $43k will reduce the bullish pressure and reposition BTC for an uptrend. Otherwise, continuous struggling to break past the $40.5K supply zone will initiate a bearish continuation to the downside.
The $36-$35k area is becoming a possibility and let’s hope, that level may provide a good support to bounce back.
Watch the downtrend, that’s where the risk is, in the intermediate time frame.

Chart 1: The chart shows a mid-cycle failure and the price action trading below the 10-day MA.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

BTC weekly chart shows the price is heading towards the downward trendline channel and it’s trading below the 10-week MA. This is a classic bull trap and making a lower low is giving strength to hit another ATL of the 60-day cycle low.
The short-term downtrend is gaining momentum now and the longer this cycle lingers or trends lower, the more likely it will gain strength to the downside.
We’re not in the environment where one can risk our capital right now. This is the time to reduce your allocation from Overweight to Underweight, because all the signs suggest, the price might likely hit the lower $30k’s.

Chart 2: The chart shows the price is heading towards the downward trendline channel and it’s trading below the 10-week MA.
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
Everything is aligning in a sort of the same way with Bitcoin and all the moving averages are trending lower. This is not a healthy looking chart as it has lost some key support levels.
On the flip side, ETH goes much lower than we often expect. So we need to watch out the downside move and plan towards it. We can always pick out position later on if the bull market is back on track.
Reclaiming the 10-day MA on the upside will be the first hurdle to cross, along with the Feb high at $3400. Bulls need prices to hold above $3000, if they’re to get back in the game.

Chart 3: Ethereum has lost some key support levels as all the moving averages are trending lower.
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