s we wrap up the week, here's a brief overview of the key technical developments in the crypto market.
7 Days Heatmap
After facing rejection at the $50,000 resistance zone, BTC witnessed a significant drop of more than 11%, causing a ripple effect across the entire crypto market.
The heatmap reveals an overall bearish sentiment, signaling an official correction movement within the crypto space. This correction is evident in ETH as well, which has declined by -5.89%.
BTC Analysis
This week, BTC has been consolidating within a narrow range, between $41,800 and $43,650.
Today, BTC broke the $41,800 support level. As long as this level holds as resistance, we anticipate a bearish continuation with a potential move towards the $39,000 demand zone.
In parallel, if the $41,800 level is broken upward, we anticipate the bulls to take over in the short term, propelling the price towards the $43,650 resistance.
For the bulls to maintain control and assume dominance from a medium-term perspective, a breakout above $43,650 is needed.
ETH Analysis
ETH faced rejection at the upper bound of the blue wedge pattern and entered a correction phase, trading within the falling channel outlined in red.
Currently, ETH is hovering around a robust support level at $2450. For the bulls to regain control and initiate the next upward impulse, a breakout above the last major high marked in green at $2550 is necessary.
In parallel, if the $2450 support is breached downward, we anticipate further bearish movement towards the lower bound of the blue wedge pattern and the $2290 demand zone. In this scenario, we will be on the lookout for new short-term buy setups.
Quote of the week
My attitude is that I always want to be better prepared than someone I’m competing against. The way I prepare myself is by doing my work each night.
~Marty Schwartz
Closing Remarks
In summary, this week the crypto market saw significant developments. Bitcoin dropped over 11% after rejection at $50,000, influencing bearish sentiments.
BTC broke support at $41,800, indicating a potential move to the $39,000 demand zone.
ETH faced rejection, entering a correction phase near $2450. A breakout above $2550 is needed for bullish control, while a breach below $2450 may lead to further bearish movement towards $2290.
