elcome to another crypto market outlook for the 19th of May!
In this edition, we'll delve into major assets such as US500, DXY, Gold, Bitcoin, and Ethereum, highlighting critical levels and potential trade setups.
From Bitcoin surging by over 9% to Ethereum hovering within a big range, and the Fear & Greed Index signaling 'Greed' for the entire week, this article covers it all.
Are you ready?
Today, we will cover the following topics:
- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advices
- Closing Remarks
Market Heatmap and Fear and Greed Index
To initiate my research, I delved into the analysis by examining the market heatmap, which provided a comprehensive overview of the entire cryptocurrency market.
After breaking above the $63,500 high, BTC surged by 9.61%, and ETH then followed suit, closing the week positively at 5.16%.
This bullish movement in BTC was reflected in the entire crypto market, with a mixture of bullish and bearish sentiments observed across altcoins.
The Fear & Greed Index is still signaling “Greed”, showing a gradual increase from 66 to 72 over the week. This indicates a growing optimism among traders.
US500, DXY and Gold analysis
We consistently monitor the US500 index to assess the current market sentiment. This practice is crucial because the cryptocurrency market often exhibits a significant correlation with the stock market, and this interconnection can impact its fluctuations.
The US500 has been overall bullish, trading within the rising wedge pattern marked in blue.
Currently, it is approaching the upper bound of the wedge pattern, so we anticipate bears to kick in soon.
In the 4-hour timeframe, the bulls have maintained control, trading within the rising channel marked in red.
The bulls will continue to dominate unless the last major low, highlighted in red at $5,230, is breached downward.
We consistently monitor the DXY - USD Index as part of our routine analysis. This is crucial because the value of nearly all assets, including BTC/USD, is closely tied to the USD, which serves as the benchmark currency in the financial market.
As anticipated in our previous outlook, DXY rejected the upper boundary of the blue channel and the $106.5 resistance level.
Currently, DXY is hovering around the lower bound of the channel, which intersects with a demand zone marked in blue.
As long as the $104 level holds, we anticipate the bulls to kick in soon!
In the 4-hour timeframe, DXY rejected the previous major low at $105.7 and traded lower.
For the bulls to take over and initiate the next impulse movement upward, a break above the upper red trendline is needed.
Gold has maintained an overall bullish trend from a long-term perspective, trading within the rising wedge pattern marked in orange.
Currently, it is approaching the upper bound of the wedge and the $2500 round number, signaling a potential reversal as we anticipate the bears to take control soon.
In the 4-hour timeframe, the bulls have maintained control after rejecting the last major low marked in red at $2265.
Currently, Gold is overall a bullish short-term trend, trading within the rising channel marked in green.
For the bears to take over and drive the price towards $2265, a break below the last low marked in green at $2370 is required.
USDT.D, Bitcoin and Ethereum analysis
As a standard practice, I begin my analysis with USDT.D as it serves as a critical indicator of traders' sentiment. USDT.D provides valuable insights into whether traders are optimistic, signaling increased investment in cryptocurrencies, or pessimistic, indicating a shift towards stablecoins.
USDT.D has maintained an overall bullish trend within the rising channel outlined in red, currently bearish as a correction phase.
As it retests the lower bound of the channel and the 4.55% support zone, we expect the bulls to kick in and initiate the next bullish impulse wave, which would be negative for the crypto market.
As expected in our previous analysis, USDT.D broke below the last low marked in blue at 4.9% and traded lower.
The bears will maintain control as long as USDT.D is trading within the falling channel marked in green.
To regain control, the bulls need a break above the upper green trendline.
Meanwhile, USDT.D would remain bearish and could still test the 4.55% support level.
As anticipated in our previous outlook, BTC rejected the $60,000 support level and is currently trading higher.
As long as the bulls maintain control, we expect a bullish continuation towards the upper bound of the red channel around $68,000 - $69,000.
After breaking above the last major high marked in orange at $63,500, the bulls have maintained control.
However, BTC is approaching a strong rejection zone, where the two upper trendlines intersect, marked in red and orange.
ETH has traded within a narrow range, fluctuating between the $2,750 support level and the last major high at $3,225, marked in red.
As long as the rising brown trendline holds, we anticipate bullish momentum to resume, potentially targeting the $3,500 resistance level.
In the 4-hour timeframe, the bulls have recently gained short-term control following a breakout above the last minor high at $3,060.
To sustain this bullish momentum, a further breakthrough above the last major high marked in red at $3,225 is required.
However, ETH's overall trend remains bearish, and it may experience further downward movement towards the $2,750 - $2,900 support zone.
Quotes / Advices
To remain objective when trading crypto, prioritize research over impulse.
Set clear entry and exit points based on thorough analysis rather than emotions.
Diversify your portfolio to spread risk and avoid placing all your hopes on a single asset.
Keep a trading journal to track decisions and learn from mistakes.
Remember, discipline and rationality are keys to success in crypto trading.
Closing Remarks
In summary, BTC and ETH surged following BTC's break above $63,500, reflecting mixed sentiments across altcoins.
US500 exhibits a bullish trend within a rising wedge pattern but is approaching a potential reversal.
DXY rejects the upper boundary of the channel and the $106.5 resistance level, while Gold maintains a bullish trend but nears a potential reversal at the upper bound of the wedge pattern.
USDT.D indicates potential bearish activity as it retests the lower bound of the rising channel.
BTC aims for $68,000 resistance following a surge post-rejection of $60,000 support.
ETH tests $3,500 resistance after maintaining short-term bullish momentum post-rejection of $2,900 support.
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