BTC & ETH Overview

The crypto market has experienced a lot of turmoil and downtrends recently. In the past 3 months, BTC is down by 45% and ETH is down by 51%. It is clear that we have entered a bear market so here is where we are at…

BTC, Market Cipher. Retrieved from Trading View.

On a weekly time frame, BTC’s money flow is negative but curving up to the upside. Market momentum wave (blue wave) is also trending upwards as well. When money flow is negative on a weekly time frame, it is a good indicator that we have entered a bear market. This shows that the overall market is extracting money from that asset rather than injecting money.

BTC has a long way before making a recovery. In the meantime it will be trading in a range of 22,400–18,900 USD based on previous support and resistance price points. If you have been thinking of building a long BTC position, this price range is good to DCA. However, I do not think that the bottom is in. There is a CME gap at 9.8k USD which will eventually get filled. The previous gaps at 24 & 18k got filled already.

BTC CME Futures. Retrieved from Trading View
BTC Daily on Market Cipher. Retrieved from Trading View

On the daily chart, we can observe the formation of a bullish divergence that resulted in the most recent pump to 24k USD. However, market mometum wave (blue wave) peaked already meaning, we can expect a retracemet in price in the coming days. As mentioned before, the price will be ranging from 22–18k USD.

ETH Daily Market Cipher. Retrieved from Trading View

On the other hand, ETH is following BTC’s price action very closely. The daily chart indicates that money flow is curving back up from negative to positive (similar to BTC). The trading range for ETH in the next days will be between 1,630–1,000 USD.

I hope this information is useful!

Love & Light,

ML

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