Bitcoin & Ethereum, Technical Outlook, Edition #200 (22/03/2022)
It's the Double Century edition! We're celebrating with a return to our roots... This one is ALL about Bitcoin, Ethereum - read on for the latest charts...👇
Locked. Loaded. And stuck in a Consolidation.
Bitcoin rallies up to local resistance after successfully flipping the two key daily moving averages into support.
Refer to the 20-period exponential moving average (D1 20 EMA, GREEN) and 50-period moving average (D1 50 MA, RED).
🙅♀️Important: Risk Warning 🙅♂️
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Bitcoin vs. US Dollar, $BTC - Daily (D1)
Markets then observed prices retest these moving averages—not once, but twice—to confirm the zone's successful flip into support.
The technicals appear to suggest bulls now look for a break higher.
Bitcoin vs. US Dollar, $BTC - Daily (D1)
However, the real test has yet to come for our bulls.
Further analysis of recent action infers a danger zone lies ahead located in the region of US$ 44K, where sellers are likely to short the .382 Fibonacci retracement level—once again, believing Bitcoin to be overvalued.
Bitcoin vs. US Dollar, $BTC - Daily (D1)
It is crucial for buyers to HODL the line at US$ 41K to 42K should any pullbacks occur during the Australian overnight trading session. Thus, it is essential to avoid chasing prices here until further consolidation occurs.
HODL is a term often used by cryptocurrency traders—a peak degen way of saying to 'hold'.
Bitcoin vs. US Dollar, $BTC - 4 Hour (H4)
If demand fails to hold the line at this crucial juncture, the hypothesis that this is indeed a false breakout—i.e. fakeout—to suck in buyers before another leg down gains further validity.
So long as major support around the US$ 36.5K level continues to hold, the market bulls may enjoy a few more moments in apparent safety.
But, slipping below the D1 20 EMA (GREEN) and D1 50 MA (RED) at US$ 40,6XX would be considered a notably bearish reaction.
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Bitcoin vs. US Dollar, $BTC - 4 Hour (H4)
On the other hand, technical analysis of Ethereum looks more convincing after a break out was followed by an apparent descending broadening wedge—recall that theory suggests this to be a formation bullish by nature.
Price action now looks amid an intense bout of ping-pong, with demand caught between a tight range. Notice that bulls seemingly attempt to confirm the breakout with bullish retests.
Ether vs. US Dollar, $ETH - 4 Hour (H4)
Q's Conclusion
The markets await an outcome from the consolidating action.
While the waiting game is often the hardest for traders, the savvy practitioner might now look to pass some time.
It is essential to consider the risks of an adverse trend reversal.
Here's a link to the #PremiumAlpha, which will be made available to all readers of Qluster Research:
See you again for the next update.
- q
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The information on this website is for general information purposes only. It is not intended as legal, financial and/or investment advice and should not be construed and/or relied on as such. Before making any commitment of a legal and/or financial nature you should seek advice from a qualified and registered legal practitioner and/or financial and/or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal and/or financial product. Qluster does not recommend and/or endorse products and does not receive remuneration based upon investment and/or other decisions
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