Without any doubt, it has been a hectic week for the crypto traders and the crypto market as a whole. Most of the top 20 cryptocurrencies are in red which tells us that the bearish trend from last week has intensified. This bearish trend can be seen in the top 50 list as well, which shows the severity of this situation.
If you read our last weekly analysis, then you would remember that we were bearish on BTC, ETH, BNB, and other cryptocurrencies. That sentiment was for the right reason – Last week, the bearish trend was minor in cryptocurrencies, but the technical charts clearly showed it was just the start of a storm & now we are in the middle of that storm.
So without wasting time, let’s look at what happened in the crypto market from 13 June to 17 June:
Ethereum (ETH)
Weekly Opening Price: $1434.84
Weekly High: $1455
Weekly Low: $1014.40
We will start our analysis with ETH, which is in red just like the rest of its peers in the top 10 list. During the first hour of Monday trading, bulls tried to push the price higher from the opening price of $1434.84 up to $1455. However, bulls failed to maintain the momentum, and all we got was a big red wick on the first opening candle of the Monday. That’s why we can say that bulls lost the battle of ETH right from the start, and this sentiment remained throughout the week.
From the ETH’s opening price of $1434.84 to its weekly low of $1014.40, it lost roughly 27% of its market cap. Although the market recovered slightly from its low of $1434.84 and is now trading marginally higher, ETH is still very bearish.
So what’s ahead for the Ethereum? If we draw the Ichimoku cloud on the ETH H1 timeframe and analyze its price movement from 13 June 2022 to 17 June 2022, it becomes clear that it failed to close even a single candle above the Ichimoku cloud.
And here’s the thing with the Ichimoku indicator – Whenever the price is trading above the cloud, that’s bullish momentum. If the price trades below the cloud, that’s bearish momentum. But when the price trades inside the clouds, that’s a sign that the market is struggling to find direction.
We believe that the trend in ETH will remain bearish until it breaks above the Ichimoku cloud with positive momentum. But will the ETH be able to break above the clouds? The last time it was trading above the Ichimoku clouds was on 6 June, and even till today, ETH has failed to even close a single candle above the clouds on the hourly chart.
The only bullish sign that I am seeing right now on the ETH H1 is an inverse H&S pattern in the making. The structure still lacks its right shoulder, and if we get a drop below the head, then the entire formation will become invalid. So if we do get a break above the neckline at $1260 with sufficient momentum, then the ETH can turn bullish and touch the $1480 level.
Bitcoin (BTC)
Weekly Opening Price: $26,574.53
Weekly high: $26,895.84
Weekly Low: $20,111.62
BTC is telling a similar story just like ETH, as it also dropped 24% from 13 June 2022 to 17 June 2022. I believe the reason for the intensified bearish trend in the BTC and other cryptocurrencies is the panic selling of the investors. But as we approach the end of this weekend, BTC seems to be forming a base around the $20,000 price level.
Let’s not forget that $20,000 is also a psychological level which is why we witnessed some buying around that level. Right now, there is a good chance that we might see a bullish momentum in the BTC, but it will be a weak one. The only time you should start to consider BTC as bullish is if it breaks the $23,000 price level.
For now, the price is sandwiched between the $20,000 and the $23,000 levels. An upward break of the $23,000 resistance level will push the prices higher to the $26,000 level. On the other hand, if the $20,000 also fails, the next stop would be at $19,300 and then $18,900 levels.
In short, action can happen in either direction, which means that you should be ready for both sides.
Solana (SOL)
Weekly Opening Price: $30.589
Weekly high: $36.093
Weekly Low: $25.843
Now let’s look at the Solana (SOL) for a change of pace. Although it is also trading close to its Monday opening, it is still a good thing compared to the losses witnessed in BTC, ETH, and other cryptocurrencies!
If you look at the SOL H1 chart, a symmetrical triangle formed between 14 June and 16 June 2022. And after a bullish breakout, the price ended up hitting its bullish target of $35 as well. After hitting the $35, the price met strong resistance and is now trading around the $30-$31 region.
If we get a bullish crossover of the 15 EMA & 30 EMA along with a break of the resistance at $32.00 – $32.50, then SOL will turn bullish once again, and there’s a good chance that it will retest its weekly high of $35.
On the downside, the important support levels are $29.80, $28, and $25.90. So there’s a good chance that we might see some bullish momentum even if the price falls from its current levels.
Dogecoin (DOGE)
Weekly Opening Price: $0.06352
Weekly high: $0.06394
Weekly Low: $0.04978
It would be an injustice not to mention Dogecoin in our list… The reason for mentioning it is not that it has posted any significant gains or losses – It just feels sad not to bring this dog-themed crypto into our discussion. I mean, if you just look at the Shiba Inu dog, it brings joy and a smile to your face.
The trend was slightly bearish in DOGE from 13 July to 17 July 2022, and it seems that the price is going nowhere with its current momentum.
The only technical pattern on the DOGE H1 chart is a triangle, but with its steep angle, we can’t say that it is a highly reliable chart pattern. But according to this pattern, DOGE has the potential to touch the $0.06531 and may gain 15% in its price.
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