This week I will be keeping things simple and looking at cryptos purely from a technical perspective, with a particular focus on Bitcoin, Ethereum, and the crypto total market capitalization charts,
Starting with Bitcoin, and just like magic BTC/USD has practically collapsed after hitting the 61.8% Fib of the top coins ATH to the 2022 low and the long inclining trendline I have been pointing out since Oct 2022.
Souce: Tradingview.com
Hard to deny the power and accuracy of Fibonacci and trendline analysis based on the above chart? Both work exceptionally well away from the comfortable prison cell of mainstream thinking and traditional technicals indicators.
With this in mind, check out the below chart,
Source: TradingView.com
Using logic, reason, and help from the chart we can see the stars are aligning for a retest of the $32,200 area.
The 50% correction of the recent high to the 2022 low, plus 200-day moving average are in this support zone.
Also, the key trendline on the chart denotes the base structure that formed during the 2021 breakout/ 2022 correction from $65,000 and overall launchpad area to the ATH.
Let's not forget that $32,000 was also the breakout area in 2023. Once this area was broken BTC never really corrected much lower than $34,000.
Personally, I think this area around $32,000 is practically begging for a technical retest to vouch for the validity of the 2023 breakout.
In the short-term, watch out for a pending test of $44,600 to decifer whether Bitcoin can head to $47,000 before rolling over or indeed rolls over from $44,600.
Now to Ethereum. ETH had been boring most to tears until its finally started to breakthrough the $2,300 and hit around $2,700.
Source: Tradingview.com
Now I suspect ETH is going to rollover based. upon what I think BTC is going to do, plus this very bearish wedge pattern well highlighted in the chart below.
I strongly favor and implosion from $2,550 to $2,600 area over the coming weeks.
Source: Tradingview.com
My downside target of $1,700 may seem too fantastic and far too low, but I still feel it's achievable.
If we see BTC hitting and getting ready to rollover from $44,600 then I will be looking to detonate an ETH short signal around $2,500-$2,600.
The Crypto Total Market Capitalization chart offers a broader representation of what I have outlined above based upon its subtle hints.
Source: TradingView.com
The head and shoulders pattern on the daily time frame is strongly hinting at a coming decline over the next few weeks.
Get ready for a strong market decline if it happens. I think we will see one more minor pushing higher according to the CTMC chart and then this very bearish looking pattern playing out.
Stay tuned for more technical commentary over the coming weeks and more so get ready for a shorting and then a big buying opportunity.
