3CommasBitcoin and Ethereum Market Analysis – 31.07.2022
BTC has been overall bullish from a medium-term perspective for the past two weeks. After creating multiple higher highs and higher lows over the last few weeks, the market has shown signs of strength, indicating that a bullish trend is shaping, at least in the short-term.
We’re still in the 1st half of the 60-day cycle, so a move back to $24k level will reduce the bullish pressure and reposition the cycle to end in a right translated structure. I am still expecting a movement to the 28k-30k resistance area.
The relatively good times could continue next month.
Looking at the BTC daily chart we see a slight retrace but the bullish narrative for now has held well. Bitcoin’s price is currently consolidating above the $23K level and well above the 10-day MA.
Still in the 1st half (Day-24) of the 60-day cycle, we may go sideways for a while though, up till mid –cycle point for more upside possibilities. We shouldn’t respond to these $2k moves in either direction. Let’s allow the market to reposition itself. I’m still long here and giving it the chance to make that move up towards $28k.
Overall, bitcoin price is consolidating and trading below USD 24,000. IF price CLEARS the 24Ks, the 28 to 30K resistance becomes the next area to anticipate. This is particularly useful for those who employ smaller time frame strategies.
Looking at the chart, a bullish rally towards $28k won’t get approved unless BTC breaks and closes above the trendline. Chances of BTC breaking above the trendline remains high. Let’s not rule out the fact that it could go contrary, leading to retest $19k level.
Chart 1: slight retrace but the bullish narrative for now has held well.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView
BTC weekly chart shows a clear breakout from the lower low (downward channel) of the 4-year cycle. With this bullish development, a medium-term move higher in the 60-day cycle is becoming more likely now.
With the 10-week MA captured, I’m looking at the remaining 60-day cycle to be more of a rally-up but we shouldn’t rule out any possibility of having a significant drop that could form a clean 60-day cycle low (double bottom).
Still room for that one good move higher especially, if it can break above the recent high around $24k.
Chart 2: clear breakout from the lower low (downward channel) of the 4-year cycle.
Source: bitcoin.live , BTCUSD Chart by TradingView
Ethereum
Still has to move ahead after over 5% profit in the last one week. Held those lows and now gone up on a counter trend move. Let’s focus on how we can be best positioned to take full advantage of this opportunity.
Currently stuck inside a consolidation near the USD 1,690 level, for the bulls to be in firm control, Ethereum needs to break above the trendline. On the other hand, if the bears push the price below $1,500, it is likely to see a retest of $1,350 because of its high volatility.
Our next bullish target is the $ 1800 resistance zone. A break above that level would take us back to the rising portion of the 4-year cycle.
Chart 3: Ethereum being stuck inside a consolidation near the USD 1,690 level and holding those lows:
Source: bitcoin.live , ETHUSD Chart by TradingView
