All tricks this past week unless you were looking to get some low bids met. I got some good bids filled so treats for me.
BTC/USDT ← chart link
The past week delivered on the lower prices I was suspecting. This last weekly close is a doji candlestick pattern, it has wicks on the top and bottom and the open and close are near the middle of the bar. This is showing indecision in the market. An increasing RSI gives me a slight bullish bias this week but the daily chart will present a better picture of what to expect.
Last week’s comments still feel valid to me so I’ll include them again.
There still isn’t a lot of strength showing just yet so we may get a visit into the support zones this week. I still am holding out hope for a good dip to the 50-Day EMA, which is now sitting in the low support zone I want to buy in before we move away to the upside on the next rally. I’d like to see a break and close above 63575 to expect some price action at or above the all-time high. All in all, I’m not expecting prices below 56k in the coming week based on these technicals.
ETH-BTC ← chart link
Again, the past week delivered on the gaining prices I was suspecting. The RSI hasn’t crossed below the bottom band yet so there’s no reason to jump the gun on expectations of a lower price relationship between ETH and BTC. This chart is entering into a level that may have some resistance so it’s a tough call on the next week without looking at a smaller level. I’m still operating with a slight bullish bias though.
The daily chart has a good look and was excellent for short-term ETH/BTC trades. The past week presented multiple opportunities to make high probability trades, 0.0657 test, the many 50-Day EMA tests, and the break of horizontal support which ran to the 0.072 level I suggested. Now, the RSI is still trending up. This is a pretty bullish picture. I wouldn’t be surprised with a test of any of these lower supports but I’m expecting a positive return this week. If the value of 0.71098 can be broken there’s room to run towards 0.074-0.076 for ETH relative to BTC which will likely be reflected in the ALT market as well.
ETH/USDT ← chart link
Again again, the past week delivered and gave us a new ATH although it’s been with little fanfare and that’s slightly concerning. I accidentally forgot to put the chart in reply mode when I took this screenshot so just ignore that little red candle at the end. The chart is still bullish and I’m cautious with a bullish bias with the rising RSI but like the other charts, the daily chart is needed for some more clarity in the next week’s outlook.
The daily chart shows the potential for why the ATH break was underwhelming. There’s been slight bearish divergence building the last few days. The price was increasing but the RSI was decreasing showing weakness in the bullish move. A test of the support around $3946 wouldn’t be outside expectations but ATH’s are notoriously irrational and price may not come down that much before going off bullish again. Worst case I don’t expect anything at the 50-Day EMA and/or the lowest level support zone around $3600. I’m still bullish on ETH for the week but I have lowball bids just in case. There could be a lot of irrationality and volatility here.
Crypto Money Fountain ← chart link
I’m still working on how best to make this into a presentable product that everyone can understand so forgive me for differences in appearances.
I’ve added zones to the charts. These are areas what I’d expect resistance (profit taking) and support (buying). When the candles get into those zones and you look at the coins represented by that section if they are matching in weakness or strength it’s more than likely going to be a true signal/indication.
Notes:
BTC: Anytime BTC is trading below the horizontal support at 60680 altcoins will likely bleed out and become risky longs, but offer good entries at lower prices. Be very careful in those positions and be sure you are checking in on BTC the honeybadger to make sure it’s recovering for real and not falling out for real.
ETH/BTC: As mentioned above breaking the resistance will likely lead to ETH increasing in value to BTC. I’d expect that would be paired with the break of the ETHUSD all-time high, and will also benefit altcoins as well. If ETH is ranging between the closest support and resistance some altcoins will shine. Look for altcoins that hold up the best during the down trending period to take bullish positions in on the return to the resistance.
ALTPERP (Large Caps: +50bil): These coins are still aren’t responding well. It continues to look like the market isn’t ready for the big run because these coins need a lot of money flowing in to make them move. Perhaps profit-taking and rotation from the low caps will kickstart this in the near future. I’d look to buy some to build up long-term positions at the lower support zones.
MIDPERP (Mid Caps: 5-50bil): These coins are not trending yet but are performing better than the large caps and are in a similar position as last week. I’d look to buy some to build up long-term positions at the lower support zones. Short-term positions are a relatively lower risk with proper setups at support but again check in with BTC beforehand to make sure it’s still in the proper range and above support.
SHITPERP (Small Caps: -5bil): These coins gave all the signs they were gonna run last week. They broke the resistance showcased last week, fell under again and tested the lowest support, broke the resistance again, opened and closed above that horizontal resistance, and then ran like crazy, granted, most of that was in meme coins before the metaverse and gaming tokens joined in. Right now I’d be cautious at the current support being tested. As long as BTC and ETH hold, or BTC holds and ETH runs, this section may have some more time in the sun. It’s seeming that this risky speculation is still dominating the market. I’d be VERY cautious and take profits as the section starts entering the top resistance zone.
I hope the format of the Crypto Money Fountain makes sense and you can utilize it properly. Feel free to ask any questions. Paid subscribers drop in a comment and let me know an altcoin or two to put in the running for the Altcoin Showcase post this weekend. Sorry I’ve been a bit behind. I’ll try to pop in a few extra posts this week.
Have a good one! Happy Halloween, if that’s your thing.
@theprivacysmurf