Technical Analysis
Good Morning!
Bitcoin BTC$ (4h)
We nearly reached the Bitcoin $25k target we talked about last week. But there is one significant difference to what I was also expecting to see: the so-called "blow-off" top. It did not happen.
Yesterday's sell-off occurred in combination with an overheated/overleveraged market structure and some risk-off waves in the traditional market. The correction helped bring back the elevated funding on perpetual futures (image). The term futures are still showing some signs of stress. The curve is in contango with the June 21 BTC Future trading at roughly $1,600 over spot (this is an annualised rate of roughly 12%).
Order book heat maps are empty again... But what we see on the price/volume chart (volume bars on the right-hand side) is that there is not much liquidity between 23k and 20k. This leads me to the conclusion that if we do not get some positive impulses for the bitcoin price pretty quickly, we might see another turn back down to the 20-21k area.
Ethereum ETH$ (4h)
We are sitting right at the top of a large liquidity pool, which is around $590. The $600 level offers some psychological support, but also the Ichimoku cloud comes in with its lower band just around that level.
It is worth trying to slowly dip ones toes in now and buy the first leg of ETH here. With another limit buy level just below $590. The stop needs to be taken below $580.
Ethereum/Bitcoin ETHBTC (daily)
The slightly bullish tone on the ETH$ chart is also derived by this chart.
We are just above a very large liquidity pool, which has also worked as a nice support/resistance flip line over the past 12 months. This would be the less riskier trade compared to going long ETH$.
Start to go long here with another one or two buy limit orders further down, with a stop below 0.025.
There are many additional smaller coins out there that are worth trying to chart. If you are interested in a specific coin please get in touch with our desk.
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