From now on, we plan to combine our analysis of multiple coins into a single article. The goal is to provide our total market analysis for the week in one location to make things more convenient.
Today we will be looking at BTC, ETH, and BNB – the three largest non-stable assets listed on the Midas platform. Currently, BTC is trading at $19.5k, ETH at $1.33k, and BNB at $274. All three assets are virtually flat over the past 7 days after a volatile week of trading. So what comes next for the crypto market?
Let’s take a look at the charts!
Bitcoin Price Analysis
First we will take a look at BTC’s 4H candle chart to get an idea of short-term price movements. In the chart shown above, we see BTC’s 50, 100, and 200 simple moving averages (SMA). The 100SMA has actually crossed above the 200SMA – signaling that the market is currently in a “neutral” mode and has shifted out of bearish territory. Confirming this is a clear bullish divergence – BTC has broken above all moving averages and is currently trading above $19.5k.
BTC briefly broke above these averages last week but was quickly rejected. If the price manages to hold above these lines (close a candle above), it would confirm this bullish divergence. The 200SMA should act as support at $19.4k. Resistance is at prior rejection zones of $19.8k, and $20.4k.
Looking at BTC’s daily candle chart, the moving averages are still in a bearish configuration. However, BTC is facing a key test here of the 50SMA. If BTC can break through local resistance at $19.7k and hold, it will be poised to test the 100SMA resistance at $21k. The daily 200SMA resistance is much higher at $26k.
Looking at BTC’s daily momentum, it seems likely that BTC will test and break $19.7k. The RSI is neutral, and Stochastic has bottomed and is reversing from an oversold position. BTC could see a rally in the coming weeks.
BTC continues to look indecisive on the weekly. The RSI is oversold, but Stochastic has been hovering near the overbought line. BTC continues to range below its weekly 200SMA, which will act as an important resistance zone, now priced at $23.7k. The most likely scenario for the coming months is consolidation.
Ethereum Price Analysis
Ethereum’s 4H chart and moving averages are still in a bearish configuration, however there is bullish divergence as the price has broken above the 50 and 100 SMA’s to test the 200. The 200 will act as key resistance at $1350. This is a definite shift for ETH as the 100SMA has acted as resistance throughout the past few weeks. The 100 and 200 SMA can act as support now, around $1300.
Ethereum’s daily chart and momentum are still bearish, but the RSI and Stochastic are currently bouncing from near-oversold levels. ETH could test its closest resistance – the daily 50SMA – priced at $1429. This has acted as resistance since September.
ETH has shown relative strength compared to BTC throughout the bear market, as it has held above its 200w SMA. The RSI is oversold, and Stochastic has been trending down as ETH consolidates and grinds upward. This sets up ETH to test higher resistances. ETH is likely to hold above $1300 as this is major support at the 200w SMA.
BNB Price Analysis
Despite recently forming a death cross pattern on the 4H, BNB has some bullish divergence on this low-timeframe chart. BNB has recently broken above the 50sMA and held it as support on a backtest, cementing it as a support zone. This support is at $272. Resistance is higher – priced around $280.
On BNB’s daily chart, it also looks poised to test 50SMA resistance around $280. This comes as BNB’s RSI is neutral and stochastic is about to bounce. BNB could get some good momentum going if it crosses the $280 and holds above that range.
Similar to ETH, BNB has shown relative strength compared to BTC and has held above its weekly 200SMA nicely throughout the bear market. Its RSI is close to neutral (slightly oversold) and Stochastic has been grinding down as BNB consolidates. A rising price floor is bullish for BNB. Major support at its 200SMA is priced at $180, but it’s unlikely to go that low in the coming months. The resistance to break is at $350 – a local high set in August.
Market Sentiment
Despite the upward price movement and bullish divergence across the charts, crypto markets remain overly fearful. This drastically lowers the likelihood of a major price dump.
Conclusion
Charts are beginning to show bullish divergence and a move from bearish to neutrality. Market sentiment is lagging – still overly fearful. It is likely that we are entering a sideways market. There will still be ups and downs, but potentially the bottom is in for BTC, ETH, and BNB alike.
NFA. DYOR.
