elcome to another crypto market outlook for the 26th 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 standing strong around resistance to Ethereum surging by over 20% following the ETF approval, 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 rejecting the $65,500 demand zone, BTC surged by 3.16%, and ETH followed suit, closing the week positively at 21.82% prior to the ETF approval.
This bullish movement in BTC was reflected across the entire crypto market, with a mix of bullish and bearish sentiments observed in altcoins.
The Fear & Greed Index is still signaling "Greed," indicating that traders remain optimistic following the ETH spot ETF approval.
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.
For almost a year now, the US500 has been overall bullish, trading within the rising wedge pattern marked in blue.
However, it is currently approaching the upper bound of the wedge pattern, so we anticipate bears to kick in soon.
In the 4-hour timeframe, the bears are clearly taking control, especially after breaking below the rising channel marked in red.
For the bears to maintain control and initiate a correction towards the $5,000 round number, a break below the last major low at $5,240 is needed.
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, the DXY is rejecting the lower boundary of the blue channel and the $104 demand zone.
As long as the $104 level holds, we expect a bullish continuation towards the $106.5 resistance level.
In the 4-hour timeframe, after breaking above the upper red trendline, it is clear that the bulls have taken over from a short-term perspective.
Currently, the DXY is trading within the rising wedge pattern marked in orange. As long as the lower orange trendline holds, a bullish continuation towards the structure marked in red at $105.55 is anticipated.
Gold has maintained an overall bullish trend from a long-term perspective, trading within the rising wedge pattern marked in orange.
Currently, Gold is rejecting the upper orange trendline, so we expect a bearish correction in the upcoming week.
In the 4-hour timeframe, after breaking below the last low marked in green at $2,395, the bears have taken over from a short-term perspective.
As long as the bears maintain control, a continuation towards the support level at $2,265 is expected.
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.
After rejecting the 5.25% resistance level, USDT.D has maintained an overall bearish trend.
However, it is currently nearing a strong demand zone at 4.2%, so we expect the bulls to kick in soon, which would be negative for the crypto market.
In the 4-hour timeframe, USDT.D has been overall bearish trading within the falling channel marked in green.
To regain control, the bulls need a break above the last major, high marked in orange, at 4.62%.
Meanwhile, USDT.D would remain bearish and could still test the 4.24% demand zone.
As anticipated in our previous outlook, BTC rejected the $72,000 resistance level and is currently trading lower.
For the bulls to maintain control from a long-term perspective, a break above the $74,000 mark is needed.
After breaking below the last major low marked in red at $69,600, the bears have taken control.
For the bulls to regain control, a break above the $69,600 mark is needed.
Meanwhile, BTC is likely to remain bearish and could test the $66,000 support level.
Prior to the spot ETF approval, ETH broke above the last major high at $3,225, resulting in a 30% surge.
As long as the $3,500 support level holds, a continuation towards the $4,000 round number is anticipated.
In the 4-hour timeframe, ETH is currently trading in a range between the $3,500 support and $4,100 resistance.
As it approaches the $3,500 - $3,600 support zone again, we will be looking for new short-term buy setups.
In parallel, for the bulls to maintain control from a long-term perspective, a break above the $4,100 mark is needed.
Quotes / Advices
Cryptocurrency is revolutionizing finance by enabling decentralized, secure, and borderless transactions.
Its blockchain technology ensures transparency and reduces fraud, while smart contracts automate and streamline processes.
With increasing adoption by businesses and individuals, crypto is reshaping industries like banking, supply chain, and real estate.
As a digital asset class, it offers new investment opportunities, signaling a shift towards a more inclusive, efficient, and innovative financial future.
Closing Remarks
In summary, BTC surged by 3.16% and ETH by 21.82% following the ETF approval.
The US500 shows an overall bullish trend, but caution is warranted as it nears the upper wedge boundary.
The DXY Index and Gold also exhibit significant movements, with the DXY showing short-term bullish control and Gold anticipating a bearish correction.
The USDT.D analysis signals a bearish trend, but nearing demand zones suggest potential bullish intervention, impacting crypto market sentiment.
BTC faces bearish pressure, needing to break above $69,600 for bulls to regain control. Meanwhile, ETH maintains a range between $3,500 and $4,100, looking for short-term buy setups as it approaches support levels.
