ello ACG warriors, and welcome to a new AltCryptoGems Market Outlook.
In this outlook, we will thoroughly analyze major assets like US500, DXY, Gold, Bitcoin, and Ethereum, revealing crucial levels to watch.
From BTC rising by 16% to a positive shift in the Fear & Greed index, and Gold breaking the 2000.0 mark, this article got you covered!
Let’s dive right into it!
Table of contents
- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advice
- Closing Remarks
1. Market Heatmap and Fear and Greed Index
To begin my research, I delved into the analysis by examining the market heatmap, providing a comprehensive overview of the entire cryptocurrency market.
Following a significant bullish week, the crypto market witnessed yet another surge.
Consequently, the heatmap illustrates a robust bullish sentiment, with Bitcoin showing a 16% increase and most altcoins experiencing a rise ranging between 7% and 20%.
Furthermore, it's worth noting that the Fear & Greed Index has consistently signaled "Greed" for several days in a row, an event we haven't observed in a long time.
Are we entering a new bull run? It's early to make that judgment, considering almost all altcoins are approaching a weekly resistance zone.
Therefore, it's prudent to exercise caution and refrain from making impulsive decisions in the current market environment.
2. US500, DXY and Gold analysis
We consistently monitor the US500 index to assess the current market sentiment. This practice is vital because the cryptocurrency market often exhibits a significant correlation with the stock market, and this interconnection can impact its fluctuations.
The US500 continues to show a bearish trend from a medium-term perspective, trading within the descending channel outlined in orange.
Presently, it is nearing the lower boundary of the orange channel and attempting to breach a strong support zone highlighted in blue.
Should the bears successfully close the day below the 4115.0 support level, we can anticipate a long-term bearish movement towards the 3950.0 - 4000.0 zone.
In parallel, for the bulls to regain control from a short-term perspective, a break above the last minor high at 4190.0 is necessary. In this scenario, a movement towards the upper orange trendline can be expected.
To anticipate a long-term bullish movement, a break above the last major daily high at 4270.0 and the upper orange trendline is required.
Meanwhile, the US500 could continue to remain bearish, potentially trading lower.
We diligently track the DXY - USD Index as part of our regular procedure. This practice is essential because the value of almost all assets, including BTC/USD, is intricately linked to the USD, which serves as the standard currency in the financial markets.
DXY continues to trade within the range bound by our support at 105.7 and resistance at 107.7. This week, DXY bounced back from the 105.7 support zone and moved higher.
From the H4 timeframe perspective, it's evident that the bulls have gained control by surpassing the significant orange high at 106.9. Nevertheless, DXY might still trade lower to test the 105.7 support before resuming its upward movement.
Gold remains robust, especially after breaking above the 2000.0 resistance level. We anticipate further bullish movement towards the next resistance around 2065.0.
Unless the last low on the H1 timeframe in orange at 1975.0 is broken downward, the movement will remain bullish. However, if this level is breached, the trend could shift from bullish to bearish.
3. USDT.D, Bitcoin and Ethereum analysis
As a standard practice, I begin my analysis with USDT.D as it functions as an indicator of traders' sentiment. USDT.D reflects whether traders are optimistic, indicating investment in cryptocurrencies, or pessimistic, signifying a shift towards stablecoins.
After a significant bearish performance last week, USDT.D is relatively stable this week.
Currently, USDT.D is approaching a strong support level indicated in blue, around 6.6%, where we anticipate the bulls to initiate a bullish correction.
However, it's essential to note that USDT.D could still remain bearish and might continue to trade lower.
In the H4 timeframe, it is evident that USDT.D is trapped inside a narrow range.
For the bulls to regain control, a break above the last high marked in orange at 7.0% is necessary. If this happens, it could indicate a bearish correction for the crypto market.
After breaking above the 32,000 weekly resistance, BTC is now overall bullish and we are expecting a movement till the next resistance around 38,000 - 40,000.
For the bulls to maintain control, a break above the last major high at 35,250 marked in blue is crucial.
Meanwhile, BTC would be confined within a range, and if the last low at 33,300 is broken downward, we anticipate a movement towards the 32,000 support level. In such a scenario, we will be on the lookout for trend-following buy setups.
After bouncing back from the 1500.0 level, ETH traded higher and is currently hovering around the upper boundary of the orange channel.
To sustain the bullish momentum, a break above the last major high and supply zone at 1890.0 is essential.
However, it's important to note that bears could still initiate another bearish correction.
From the H4 timeframe, the bulls will continue to be in control unless the bears manage to break below the green support at 1745.0. If this level is breached, further bearish movement could be expected, potentially reaching the 1500.0 - 1550.0 support range.
4. Quotes / Advice
The financial markets are a constantly evolving ecosystem, shaped by global events, economic indicators, and technological advancements.
Traders must embrace lifelong learning to navigate this intricate landscape successfully.
Continuous education enables them to adapt to shifting market dynamics, identify emerging trends, and diversify their portfolios across various asset classes.
Moreover, a deep understanding of technical and fundamental analysis, coupled with robust risk management skills, is essential.
5. Closing Remarks
In summary, the cryptocurrency market experienced a surge following a bullish week, with Bitcoin and most altcoins showing significant increases, fostering a robust bullish sentiment.
The Fear & Greed Index consistently indicated "Greed" for several days, suggesting a positive market outlook.
The US500 index displayed a bearish trend within a descending channel, nearing a crucial support level.
The DXY (USD Index) fluctuated within a range, with potential for a bullish move after rebounding from support.
Gold remained strong, with an anticipated bullish movement unless a key support level was breached.
In cryptocurrency analysis, USDT.D stability indicated cautious optimism, while BTC showed overall bullish momentum, aiming for the 38,000 - 40,000 resistance range.
ETH, after a bounce back, hovered near the upper boundary of a channel, with bullish momentum sustained unless a specific support level was broken, potentially leading to a bearish correction.
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