Despite a not-so-bullish market move yesterday, this week brought up a lot of positive development to the crypto industry this week. Industry leaders took a stance on the latest regulations while the mainstream NFT adoption continues and new features went live in Quadency!
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Despite a cooldown, Bitcoin (BTC) started the week with a lot of positive news including a golden cross signal on Feb. 6th. According to Glassnode, earlier this week most of the BTC holders were in the profit zone for the first time since April 2022. This can be explained by the recent rally that started in January and the fact that more than 600,000 BTC wallet addresses have been created since BTC topped $20k.
On the LTF, the story is much the same; we've seen price retrace into premium prices, testing the equilibrium of the bearish price range before price started its bearish leg.
We have now found short-term support at the $21647 price level, which was to be expected given the 1D bullish order block, but we also have refined zones of importance on the hourly chart.
Potential bullish scenarios would now be a bullish move up into the $22600-$23000 price levels, where it would meet the 1H 50 EMA as resistance. Alternatively, if further bearish prices are still on the cards, we would expect price to push deeper into the 1D bullish order block and the hourly zones of importance inside, the next being at $21200.
This week we saw BTC's impulse lower, confirming the accumulation schematic we've been watching on the LTFs the last few weeks. Price broke to the downside, raiding 1D sell-side liquidity, and has found short-term support at the bullish order block in premium prices at $21800.
Given that BTC is getting extremely close to having its first golden cross since August 2021 which led to new all-time highs being reached, or on some datas has already taken place, this zone could act as strong support for the next impulsive bullish price leg higher, at least to raid the 1M buy-side liquidity at $25207.
On the HTF, if the cluster of the daily 50 and 200 EMAs, bullish order block, fair value closure, and 1D SSL is to act as support, we would expect a move to the $23500 level at a minimum before assessing whether further bullish prices are on the cards. Or we are heading down into deeper discounted prices before any further continuation.
It's important to remember that many eyes will be watching for this bullish signal to take place, so it's important to be wary of any manipulative moves that could try to shake willing buyers out before the true move takes place.
The altcoins followed Bitcoin in the recent market drop with top altcoins dropping between 5% to 10% on Thursday. While the markets haven’t rebound yet, most altcoins have stabilized over the last few hours.
ETH this week has had a similar story to BTC's; however, we are currently finding support at the 200 EMA as we speak, the 50 EMA is fast approaching, and a golden cross could soon be in play. But beware, a bearish push lower could easily deny the golden cross or result in an immediate death cross before bullish prices push higher.
If further bearish prices are to be achieved before further bullish continuation, we would expect a move down to the $1250 price level, where we meet a cluster of confluences in the form of bullish order blocks in discount, the closure of daily fair value gaps, and the reaching of discounted prices.
Alternatively, if we push higher from the 200 EMA we're currently at, we should see at least a move into the $1670-1750 price levels before we see any retracements.
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Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.
Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.
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