If we look at the current situation in crypto markets, the market leader Bitcoin (BTC), is almost back to its $20,000 support zone. In fact, it has been trying to pierce that $20,000 resistance since the 19th of August 2022. If we look at the Ethereum price movement during the past few weeks, it is also touching monthly lows.
From a technical standpoint, sentiment in crypto still seems to be bearish. Are any of the largest digital assets by market cap flashing buy signals? We look at technical indicators below to address short-term price action.
Weekly Open: $1618.13
Weekly High: $1722.00
Weekly Low: $1529.92
The start of this week was rather dramatic for ETH as it attempted to challenge the recent low of $1530 as soon as the weekly trading session opened. However, a series of buying orders pushed ETH to eventually reach the weekly high of $1722.
However, it seems that ETH is playing a ping-pong match with the buyers and sellers. After only spending a few hours at the $1722, the coin was pushed lower, as seen in the recent red candles (strong momentum).
For now, the nearest support zones are located at $1550 and $1530, while the resistance is located around the $1700 – $1720 region.
If you look at this chart of ETH (H1), you can see that its wicks are continuously touching the lower band. The BB added to this ETH chart is a modified version that can handle large swings and high volatility. Now, this is an indication that ETH is trading at its lower range, and there is a chance we may see some bullish momentum soon enough.
Weekly Open: $21,516.70
Weekly High: $21,900.00
Weekly Low: $20,890.14
Bitcoin (BTC) is currently testing its support zone around the $20,800 – $20,750 region. But if you look at the charts, you will see that a bearish formation is already complete and now all that’s left is that $20,800 – $20,750 support zone. But the real support is most definitely the $20,000 price level which is deemed important by many traders and experts.
Looking at that bearish structure and the nearest support zones, it makes sense to consider that Bitcoin (BTC) is aiming to touch its $20,000 support zone once again.
If we talk about the price action for this week, it was mildly bullish, but a few red candles wiped the entire baby bull out of the picture. For now, Bitcoin (BTC) is bullish, and the long-term holders who want a new all-time high will have to play the waiting time.
Weekly Open: $301.9
Weekly High: $307.5
Weekly Low: $286.2
At the time of writing this analysis, Binance (BNB) is making a new weekly low and is trading around $286.2. It is infrequent for cryptocurrencies to make a new low on a Friday night, but that doesn’t mean it can never happen.
Based on the charts attached above, it is clear that BNB is in the control of bears who will try to challenge the support zone around the $275 – $270 region. If we look at the past trading history, BNB has bounced back 3 times from the $275 – $270 region, which indicates the presence of bullish pressure around that area.
For now, BNB is bearish, just like ETH and the BTC, which tells us that the broader crypto market is still bearish at large, with a few exceptions here and there.
Weekly Open: $36.477
Weekly High: $36.501
Weekly Low: $32.775
Solana’s (SOL) trading range was very narrow for the week (a few dollars at best), but it seems that it has also completed a bearish structure like the rest of its peers. Based on the bearish structure of SOL, it is headed down to target the price range of $31.70.
On the upside, the resistance is at $34, $35, $36, and $36.50. But the overall sentiment of the crypto market is negative, so there is very little chance of any bull in the SOLANA.
Weekly Open: $0.4627
Weekly High: $0.4820
Weekly Low: $0.4374
The weekly open of ADA was $0.4627 for the week, and the highest point was $0.4820. Similarly, the lowest point was $0.4374, which is now acting as a support.
For now, Cardano (ADA) has also pierced its bullish trendline and is showing a negative sentiment of the traders. We believe that ADA is en route to the $0.4350 – $0.4300 region (support zone). This bearish sentiment is more in line with the current situation of the market.
But if you notice any signs of a bull in ADA, then do confirm it first by looking at the hourly charts of Bitcoin, Ethereum, and other coins. Any single case of bullish momentum in a coin such as ADA should not be taken seriously. In most cases, that’s a bull trap at best!
As you can see, all 5 cryptocurrencies discussed today are bearish, and there’s little chance of bullish momentum for now. Although things can change within seconds in any market, the current sentiment is bearish without any doubt.
We believe that Bitcoin (BTC) will play a significant role in leading the recovery of crypto markets. But when that happens is a whole different story, and everyone has their own opinions. If we look at the current economic condition of the world and especially the USA, inflation is soaring, which is, in turn, facilitating more interest rate hikes.
Whenever we see a rise in interest rates around the world, this can hurt stocks, gold, and cryptocurrencies! So, for now, a change in the fundamentals is also a major requirement before we can see another bull run in the crypto market.
A factor that could push Bitcoin and other cryptocurrencies higher is some major geopolitical tension, but that is already happening in the case of the Russia-Ukraine war. So, for now, both the technical and the fundamentals are not appealing for the crypto bulls…
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the cryptocurrency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal, or accounting advice.