BOTS crypto news week 16
In two weeks, nearly 600 billion US dollars of capital has been withdrawn from the cryptocurrency market. Bitcoin dropped 27% in value in recent weeks, resulting in a bloodbath on the entire cryptocurrency market. The drop also caused huge fear among investors. In fact, the fear and greed index indicated the lowest reading since the market crash in March 2020, which was caused by the corona virus. In this weekly update, I will report on how Bitcoin and Ethereum are doing after this sell off.
As I mentioned in the introduction, Bitcoin has taken a big nosedive over the past week. Bitcoin dropped from almost 65,000 to 46,500 US dollars, a drop of about 30%. How long could this decline continue?
Bitcoin has broken out of the falling wedge construction since last week. Since Bitcoin has broken out of this pattern, I indicated last week that I expected more downside.
The support levels we discussed were those around US$52,000 and those around US$45,000.
Bitcoin fell through the support around 52,000 US dollars and dropped to its lowest point at 46500 US dollars. So the discussed support around 45.000 US-dollar has not been tested yet. Often when the buy pressure is very high, you will see that support areas are not exactly hitbut just above it.
For Bitcoin to end this correction, it is important to stay above 52,000 US dollars and test this as support after which continuation is possible. If this does not happen, I expect the supportaround 45,000 US dollars to be tested.
The 4 hour time frame shows that Bitcoin is again above the important 52,000 US dollar level.
On the 4 hour time frame, bullish divergence was also seen as the price made a lower low while the oscillator made a higher high. Bitcoin gained about 10% on the basis of this bullish divergence.
The Ethereum price was not very much affected by the Bitcoin bloodbath. Not much has changed on the ETH/usd chart since last week. Ethereum is still in a risingchannel. However, bullish convergence has been seen on the oscillators. Bullish convergence can be deduced from the fact that the price is making almost the same low, while the oscillators are making a higher high . This can be an indication that there is upside for Ethereum.
The most important chart to look at in this weekly update is the Ethereum/Bitcoin chart. Indeed, in recent weeks Ethereum has been gaining a lot of ground against Bitcoin. This has caused Ethereum to break out of a 1000 day accumulation. The last time Ethereum rose above the indicated orange level was in December 2017.
As I mentioned in the article 'the future of Ethereum', I think it is plausible that Ethereum could gain even more ground against Bitcoin in the coming months.
Ethereum gaining a lot of ground over bitcoin is often very favorable to altcoins.
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