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Bitcoin and Ethereum Market Analysis – 29.08.2022

The new week has started with the cryptocurrency market bouncing back as most of the coins are in the green zone. Bitcoin managed to claw its way to a meaningful round level early in the week, trading at $20,400 on Monday night (+2.8% in 24 hours). While a move above this level could indicate a resurgence, it is unlikely that the bulls have the necessary momentum.

The downtrend is well entrenched. Bitcoin is oversold and short-covering rallies are possible at any time. I have NO desire to attempt being long for a corrective rally. A low at $17.6k remains a distinct possibility and will present itself as a good buying opportunity.

Looking at BTC daily chart we see a clean 60-day cycle low, trading below 10-day MA for the first time since July. The chart shows how the counter trend move was broken after losing the higher low. The price action is in the range phase, closer to the support area which could trigger off more downslide.

Although the overall sentiment remains bearish for the mean time, we look forward to any counter trend move that will take the price action to day-33 high. Bitcoin price is showing some signs of pausing its downtrend with growing hints of a recovery.

Chart 1. A clean 60-day cycle low, trading below 10-day MA for the first time since July
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

 

BTC weekly chart shows a bounce back from the two major capitulating events. The dominant decline last week suggests that a lower level of the 4-year cycle is still in the cards. This doesn’t necessary mean that we’re going to see new low(s).

BTC is trading at the lower barrier of the formed descending channel, but we’re expecting some consolidations 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 mid-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 which might not come pretty soon.

Chart 2. A bounce back from the two major capitulating events but trading at the lower barrier of the formed descending channel.
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
Ethereum showed an even more decisive rebound, adding 8.5% at once to $1580. Ethereum has a little more volume and momentum than BTC and that could be attributed to the upcoming merge plan and transition to a proof of stake consensus mechanism.

Buyers keep pushing the price above $1450 over the last 24 hours which shows strong demand at lower levels. This is an indication of good things to come and that, we might not get to below $1k in the nearest future.
Everything is shaping for the end of this bear market but you have to be patient.

Chart 3. Aecisive rebound, adding 8.5% at once to $1580:
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