Good Morning!
Retail cash buying continues. The pushes we have seen in the 9k area are driven mainly by cash buying. It has caught some sellers by surprise. What I mean by this is that during the rally that started on April 29, the network was clocked up due to large coin movements, which resulted in a massive delay and a spike in transaction fees. This, in turn, fuelled the rally even more.
BTC$ (4h)
We are seeing some good support at around 8.5k, and cash buying continues. There is a little bit of FOMO happening here, which has resulted in a push out of the term basis in the futures market. But there is still enough room in the derivatives market to trigger FOMO full force, and, I believe, this could happen once we trade through the 10k barrier.
BTC$ (weekly)
I have mentioned it a few times in the past already, but I'd like to reiterate something that I think is really important from a technical chart analysis point of view. If we break above 10k with force, we will push through the upper leg of the symmetrical triangle and into the weekly Ichimoku cloud. If this happens, I expect resistance to show up around the 12k area, which is the upper band of the Ichimoku cloud. But, as you all know, sometimes the BTC-train simply leaves the station, and if you're not on the train, you won't be back on it anytime soon...
ETH$ (4h)
The resistance at $200 was taken out swiftly with BTC$ pushing on since April 29. Since then we have lost a bit of steam and drifted back towards the upper band of the Ichimoku cloud. We are still in a healthy uptrend, and so far nothing is pointing to a weakening of it. It will be a warning sign if we start breaking lower into the cloud. Bullish sentiment will increase once we start trading above the $220 level.
ETHBTC (4h)
Are we in the making of a potential shoulder-head-shoulder formation? Please do not fall for the trap and enter into positions due to a "potential" pattern. Only trade once it has been confirmed. However, we can use what we see, and right now I believe we have a nice support/resistance flip line at around 0.02250.
So, go long now with a stop below that line.
ETCETH (daily)
The ETH 2.0 launch is nearing, and I'm keeping an eye on the ETCETH cross. In January of this year, we saw a strong rally of ETC versus ETH. This was during a time when there was a great deal of negative press about the failed test net launch of ETH 2.0. Some people speculated that the community might move back to ETC if the developers of the ETH 2.0 project did not get their act together.
Since the end of April, we have some indication of renewed strength for ETC versus ETH. Let's see how this evolves over the next few weeks and look out for headlines about the ETH 2.0 launch.
