Welcome to another crypto market outlook for the 3rd of May!
The crypto market has been more optimistic than ever, recording its third consecutive bullish week. But as we all know, nothing goes straight up. Is it time for a correction, or is there still more upside potential? Let’s find out together.
Today, we will cover the following topics:
– Market Heatmap and Fear and Greed Index
– US500 and DXY
– USDT.D, Bitcoin and Ethereum Analysis
– Quotes / Advices
– Closing Remarks
Market Heatmap and Fear and Greed Index
This week has been relatively calm so far, with BTC ending slightly negative around -0.9% and ETH hovering near breakeven. Some altcoins are bleeding, while others took the opportunity to break to new highs.
The Fear and Greed Index continued to rise, marking the second consecutive week in the Greed zone. A Greed sentiment typically signals money flowing into crypto, suggesting the potential for more upside.
US500 and DXY analysis
As per our last market outlook one week ago, the US500 is retesting a strong structure around $5,750.
If $5,750 is broken to the upside, a continuation toward the $6,000 round number would be expected.
In the medium term, as long as the green resistance holds, a bearish correction toward the lower bound of the orange rising channel is expected, which would be negative for both the stock and crypto markets.
DXY is currently sitting at a make-or-break support near the $100 round number.
As long as $100 holds as support, a stronger DXY is expected in the upcoming week.
However, if $99 is broken to the downside, further decline toward $97 could be on the horizon.
DXY is still hovering within a range, forming an inverse head and shoulders pattern marked in red.
For this bullish reversal setup to be confirmed, a break above the $100.5 neckline is needed.
USDT.D, Bitcoin, and Ethereum analysis
As per our latest USDT.D analysis, it is still holding strong above the 5% level, which is not favorable for crypto.
For another bullish leg in the crypto market to be expected, a break below the 5% level on USDT.D is needed.
For the bearish scenario in crypto to be confirmed, a break above the 5.21% major high on USDT.D is needed.
BTC remains overall bullish this week, especially after breaking above the $95,500 mark, as mentioned in our last roundup article.
As long as the rising orange channel holds, further bullish movement toward the previous all-time high is expected.
In parallel, if the lower blue and orange trendlines are broken to the downside, a bearish correction toward the $88,000 support zone would be expected.
In such a scenario, we will be looking for medium-term trend-following long positions as long as the $86,000 support level holds.
ETH has been rejecting a massive resistance zone, formed by the intersection of the two upper trendlines in orange and red.
For a long-term shift in momentum to occur, a break above the $2,100 resistance level is needed.
In the medium term, as ETH retests the lower orange trendline and the $1,700 round number, we will be looking for new trend-following long positions, targeting the $2,000 round number.
Quotes / Advices
Every trader has strengths and weaknesses. Some are great forecasters, others are good at execution. Learn what your strengths are and build on them.
~ Michael Marcus
Closing Remarks
In summary, the crypto market remains optimistic, logging a third consecutive bullish week. BTC and ETH showed signs of consolidation, while some altcoins pushed higher.
The Fear and Greed Index continues to rise, signaling potential for more upside. Meanwhile, the US500 is testing key levels, and DXY hovers near critical support.
USDT.D remains above 5%, putting pressure on crypto, but BTC and ETH still hold key bullish structures.
