In a recent episode of “Casual Friday,” pseudonymous crypto analysts DonAlt and CryptoCred discussed the contradictory technical picture for Bitcoin BTC/USD, Ethereum ETH/USD and altcoins.
The Bitcoin Analysis: The conversation kicked off with a deep dive into Bitcoin’s charts across multiple timeframes. DonAlt highlighted the critical $59,000 level on the monthly chart, noting, “every time it looks like we’re finally gonna kind of move away from it get sucked back in.”
A break below could potentially lead to a test of lower supports around $52,000 or even $47,000. However, they note that the recent washout to $49,000 may have cleared out overleveraged positions, potentially setting up for a stronger bounce.
In contrast to the relatively bullish monthly chart, the weekly timeframe has a bearish structure, which has been a thorn in the side of bullish narratives. DonAlt admitted that the contradicting assessments on different time frames “just go to show how choppy the market is.”
Also Read: Bitcoin Spot ETFs See Muted Inflows As Negative Funding Rates Signal Bearish Sentiment
The Ethereum Analysis: Turning to Ethereum, DonAlt, who has been “bull posting” about the crypto, identified the $2,200-$2,300 range as a crucial support level for it.
He outlined his rationale for a bullish trade, saying “There’s a level that is actually really and that kind of prevents the market from going to zero, that’s usually what you want to bid.” The ETH/BTC ratio has also hit support at 0.043, a level not seen since January 2021.
The Overall Market: The discussion also touched on the impact of ETFs on both Bitcoin and Ethereum. While Bitcoin’s ETF has been seen as a major driver of its recent performance, Ethereum’s ETF has experienced outflows. DonAlt noted that without ETFs, Bitcoin would be trading at “$40,000 to $50,000 at best.”
The analysts speculated outflows could be temporary, drawing parallels to the initial outflows seen with Bitcoin ETFs before they became a significant force in the market.
The conversation also touched on the broader altcoin market, noting the significant dispersion in returns. While Bitcoin has made new all-time highs, many altcoins are still struggling, with some down 50%-70% from their peaks. This divergence is seen as unusual compared to previous bull markets where a rising tide lifted all boats.
With conflicting signals across timeframes and assets, the analysts suggested that traders need to be prepared for various scenarios and maintain a long-term perspective, as short-term volatility may obscure broader trends.
Read Next:
As the digital asset market continues to mature, the convergence of regulatory shifts, M&A activities and adoption trends will define the future of this dynamic field. Future of Digital Assets Powered by Benzinga in New York City on Nov. 19 will provide industry leaders and investors a platform to explore these developments further, offering insights into the evolving regulatory environment and the latest market dynamics. Click here to be part of the action!
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
