An overview of the trading activities on the cryptomarkets. Studies on traded volumes, supply and demand situations, as well as periodic technical analysis of the most important crypto-currencies and indices, including the perspective of professional Traders.
Technical Analysis
Good Morning!
At the time of writing, Bitcoin (BTC) is trading at $47,500 (+15.6% in 7 days), Ethereum (ETH) is trading at $3,400 (+17.5% in 7 days), and the spread ETH/BTC is trading at 0.071 (+2.25% in 7 days).
Last week, the markets started gaining some ground. Sentiment has become noticeably more positive. Measured by market cap, the crypto market is up roughly 15%. This basically represents the performance of BTC. Measured by FTX's ALT Index, altcoins have risen similarly by about +14%. The MID (+18%) index and SHIT index (+26%) have also performed comparatively well.
Bitcoin breaking out
BTC has finally been able to break out of the 35k to 45k range, and is now trading well above it at 47.5k. The emerging momentum (and the emerging positive sentiment) keeps me positive. Nevertheless, the price has the potential of falling back to the breakout level of 45k in the short term. In my opinion, this would represent an interesting medium-term entry opportunity:
- Support: 44,600-45,000, 35,500-36,000
- Resistance: 48,250, 52,000-52,500
Ethereum following along
ETH is currently trading at USD 3'400, and the chart shows a similar picture as that of BTC. Here, too, we see a range breakout, and a potential setback to the breakout level of USD 3'100. On the upside, we hardly see any resistance up to USD 3'800. However, in my opinion, too much hype is already priced into the price due to the Ethereum merge. And I consider the frustration potential to be significant. And prices well below USD 3'000 are not unlikely.
- Support: 3'000-3'100, 2'400-2'500
- Resistance: 3'400, 3'800-3'900
Terra breaches all-time highs
Terra (LUNA) is currently everyone's darling, and is trading at all-time highs. The ecosystem is continuously growing. If you look at the chart, you can see an interesting setup. Since the beginning of March, an ascending triangle has formed. Currently, LUNA is trading at USD 105, which represents a breakout to the upside. The volumes are also above average, which confirms a breakout.
A long entry at these levels has an extremely interesting risk reward profile. The stop loss could be made at USD 90, and upwards the sky is the limit (the upper trend channel resistance is at USD 190). However, this seems too optimistic to me and I would go for a price target of USD 135. This corresponds to a reward to risk ratio of two.
- Support: 90, 82, 76, lower trend line
- Resistance: upper trend line
Happy Trading!
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