BTC/USD, XAG/USD (Silver) : Technical Outlook, Edition #22 (14/06/21)
Elon Musk tweet sends Bitcoin rallying again, will this be the trigger for restarting the Crypto bull market? Bitcoin dominance on the rise again, how will this impact altcoins?
The Crypto correction is over - BTC likely heading to USD 46K in the coming days, or weeks
Our Bitcoin bulls have been fighting for this bullish shift in market structure.
Now, all we need is for them to follow through on the re-test around USD 37 – 38K. If BTC/USD can flip that resistance into support, a further continuation up to USD 41K is likely.
Speculators are leaving altcoins and converting back into bitcoin; these are /BTC trading pairs. Big cap altcoins will slowly rise in their /USD pairs. However, their respective /BTC trading pair may suffer as Bitcoin Dominance (BTC.D) grows.
Let's take a deep dive into the H4 BTC/USD and BTC.D charts below…
These are the two most significant charts in the cryptocurrency market right now.
A confirmed bullish reversal requires two higher highs (HL) and two higher lows (HL). Therefore, depicted on the BTC/USD H4 is the ideal bullish scenario for Bitcoin to follow:
An initial break up above resistance (higher high) returns to confirm a resistance/support flip (higher low) before uptrend continuation.
Managing your risk is critical here
Stop losses moved up to breakeven = no capital lost.
Come back again when there has been better confirmation of a bullish reversal or another better-looking trade set-up.
There is no need to FOMO and allow Bitcoin to steer the market from here.
We will look further into Bitcoin Dominance next (BTC.D) and see why chasing altcoins now may be a potentially bad idea.
A clear bullish breakout and now flirting with the .618 fib retracement zone
Closing above and flipping 45.80% bodes well for Bitcoin receiving more attention, but will the altcoins continue bleeding...?
As the dominance climbs, more speculators are leaving altcoins and converting back into bitcoin; these are /BTC trading pairs
We want to see the crypto market cap growing, so fresh money is entering to confirm both a bullish sentiment and further growth expectations
If not, and if dominance continues to climb, then you're witnessing a possible exit pump.
Demand for altcoins drops as Bitcoin's rise before our Market Makers become bears and leave Bitcoin to search for more conservative trades in additional asset classes.
Call it sector rotation, and we believe it may be happening now…
Once banks begin to taper (slow bond purchasing) and raise interest rates, there's a possibility cryptocurrency will experience another bear market that will last years according to the next halving cycle.
More conservative markets would be; commodities, stocks, and eventually Forex when the interest rates rise.
Q has a fondness for the weekly Silver (XAG/USD) chart; look how beautiful this flag is coming along.
Considering Bitcoin currently shares an inverse relationship with Gold and Silver, the recent rise is logical should an exit pump occur over the next few weeks as the big institutional players accumulate gold and silver to hedge against inflation.
When they are ready, their set-ups will form and break up (ideally) over the next few weeks.
Be careful with long term crypto buying – don't HODL for too long. There's nothing wrong with putting ego aside and waiting for a better trade opportunity.
BTC moves aggressively and traps dumb money.
Once confirmation of a bullish re-test materialises, we could see a bounce as high as 46-48K USD - any higher, and that may be the bottom.
BTC could see new highs...
It's unlikely at the moment, although times are uncertain, and things can change very quickly.
Be safe and stick around for our daily updates as the situation unfolds.
See you again for the next update.
Follow us for more detailed analysis on all markets, including Decentralised technology. Check out the links below
Subscribe to our newsletter, with daily content free for a limited time only:
Join our Facebook group and speak with likeminded traders:
Like our Facebook page for future updates:
Follow us on LinkedIn for future updates:
Keep up with us on Twitter:
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 by our email recipients, publications, newsletter or website users.