Welcome to another crypto market outlook for the 25th of August!
From BTC surging by over 7% to USDT.D approaching a support zone, and the Fear & Greed Index signaling “Greed” again, this article sums it all.
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
After Jerome Powell's speech on Wednesday, market sentiment suddenly shifted to bullish again, especially with lower interest rates in the US now on the horizon.
That’s exactly why BTC surged by a massive 7%, shifting the entire market sentiment back to bullish.
This bullish movement quickly shifted the Fear and Greed meter from Fear to Greed in just two days, with the meter spiking from 31 all the way up to 56.
US500, DXY and Gold analysis
Before analyzing the crypto market, let’s dive into the main international markets to get a sense of Gold, Stocks, and the US dollar.
The US500 isn’t taking a break, as it recorded a new weekly high on Friday as mentioned in our last detailed market outlook.
However, it is currently retesting a major supply zone marked in red, which the bulls need to break for them to remain in control.
From a medium-term standpoint, if the last low at $5,560 fails to hold, a short-term bearish correction could begin.
Meanwhile, the US500 and the stock market will remain extremely bullish.
After breaking below the $102 checkpoint, the DXY has been bearish following Jerome Powell’s speech.
As long as bearish pressure persists, a continuation toward the $100 support level and round number is possible.
From a medium-term perspective, the DXY will remain bearish as long as it continues trading within the falling wedge pattern marked in blue.
However, since DXY is nearing the lower boundary of the wedge, short-term bullish pressure might emerge.
Gold is, and will always be, the classic safe haven.
Mark my words, sooner or later, Bitcoin will steal that title from Gold.
Currently, Gold is still hovering around a massive rejection zone, which is the intersection of two trendlines and the $2,500 level.
On the 4-hour timeframe, Gold will remain bullish as long as it continues trading within the rising channel marked in blue, unless the last low at $2,470 is broken downward.
In such a scenario, a bearish correction toward the lower bound of the orange channel will be likely.
USDT.D, Bitcoin and Ethereum analysis
According to our latest market outlook, USDT.D is in a correction phase and approaching the lower bound of its range.
As USDT.D nears the 5% - 5.15% zone, expect an aggressive shift in trends. Be prepared.
From a short-term perspective, USDT.D remains bearish, engulfed by the falling channel.
Bearish pressure will persist unless the channel is broken upward.
As mentioned in our last market overview, if BTC breaks above $60,000, the bulls will take over again.
As long as the $60,000 - $62,000 support zone holds, a bullish continuation toward the upper bound of the falling orange channel will be on the horizon.
In the medium term, BTC is expected to surge further this week within the rising channel marked in orange.
The next resistance for BTC would be around the previous major high at $69,000.
ETH is no different; it has been rising throughout this week as part of a correction phase within the giant falling wedge.
As long as the bulls remain in control, the next rejection zone would be at the intersection of the upper bound of the red wedge pattern and the $3,000 round number.
From a short-term perspective, ETH is currently at the upper bound of the flat channel marked in red, so minor bearish pressure is expected.
Quotes / Advices
Trade What's Happening… Not What You Think Is Gonna Happen.
~ Doug Gregory
Closing Remarks
In summary, following Jerome Powell's speech, market sentiment shifted to bullish, driving a surge in BTC, ETH, and other altcoins, with the Fear and Greed Index moving from Fear to Greed.
US500 remains bullish but faces a critical supply zone, while the DXY stays bearish with potential short-term bullish pressure.
Gold continues to be a safe haven, hovering around a significant rejection zone.
USDT.D is nearing a key support level, signaling potential bearish pressure on the crypto market.
Both BTC and ETH remain bullish in the medium term, with BTC targeting $69,000 and ETH approaching $3,000, though short-term bearish corrections may occur.
