Crypto Market Nearly Over-Extended

The crypto market is finally breathing again! But how long will this bullish cycle last? Let’s dive into this short article to find out.

7 Days Heatmap

‍Following the rejection of the $52,000 support zone, BTC has been bullish for the past couple of weeks.

This week is no different, as BTC closed with a bullish gain of around +3%, shifting the overall crypto market sentiment to bullish once again.

7 days crypto heatmap showing bullish momentum with BTC up by almost +3%. — *Crypto Heatmap 7-Days*

BTC Analysis

‍Updating our last BTC analysis, it has been bullish as a correction phase. However, BTC is now hovering around the upper bound of its range at the $60,000 resistance and round number.

BTC daily chart overall bearish and currently rejecting a resistance at $58,000 - $60,000. — *BTC Chart - Daily Timeframe*

For the bulls to remain in control and take over from a long-term perspective, a break above the red trendline and the $60,000 level is needed.

Meanwhile, BTC could still trade lower for one more bearish impulse towards $50,000, especially if the $57,000 support level is broken downward.

ETH Analysis

‍Following BTC's lead, ETH has also entered a correction phase, as mentioned in our last market outlook.

As long as the $2,500 resistance level remains intact, further bearish pressure is likely on the horizon.

ETH daily chart overall bearish trading within a falling channel and currently rejecting the upper bound and $2,500 resistance. — *ETH Chart - Daily Timeframe*

For an over-extended bullish movement towards the $3,000 mark to occur, a break above the resistance zone marked in blue is required.

Quote of the week

‍The stock market is a reflection of human psychology. Master your emotions, and you’ll master the market.
~ Steve Nison

Closing Remarks

‍In summary, the current bullish momentum in the crypto market, led by BTC and ETH, has reignited optimism among investors.

However, for this bullish cycle to continue long-term, BTC needs to break above key resistance levels at $60,000, while ETH must overcome its $2,500 resistance.

Failure to do so may result in further bearish movements, with BTC potentially dropping to $50,000 and ETH facing additional downward pressure.

Until these resistance levels are breached, both assets remain at risk of corrections despite their recent gains.

Seeking a more in-depth analysis? Explore our latest market outlook for further insights.