Two weeks ago we identified Ethereum’s lack of volatility as a good thing provided key levels were respected. Ethereum moved higher, after a trendless period of a month. Last week, we identified that the current weekly candle on the Bitcoin chart would be meaningful. While we got some nice intra-week moves, the price action was also muted. This brings up the question whether Bitcoin will be able to go back to 30k or not.
In our crypto investing research service we use several leading indicators for the crypto market, some of them might be unusual and not expected. However, they are very accurate, interestingly. We welcome readers to sign up and find out the details (we can’t share all the details in the public domain for obvious reasons).
Here is one correlation that the entire world can see: Bitcoin is highly correlated, directionally, with the Nasdaq.
While the Nasdaq may be hitting resistance, we see that Bitcoin is somehow lagging.
Still, the Bitcoin chart looks pretty solid in terms of the reversal that it is creating.
Because of the above, we have the impression that Bitcoin might test 29.9k in the next few weeks. However, in our latest research we gave Bitcoin ultimatum, a very specific date by which it has to be moving higher. It might be that it will be testing 30k by then in which case it would turn 30k into resistance.
Below is one of the 6 Bitcoin charts that we use in our research service. Note that we read the crypto market through the lens of 6 different Bitcoin charts (different chart structures) and 3 leading indicators.
Contrary to common belief, you don’t need many indicators and data points, you need less. In financial market analysis, less is more.
In the altcoin space, we see only a few alts outperforming. Ethereum is one of them, but there is not a lot happening. In ‘regular circumstances’ the altcoin space would be on fire, not so this time. We are not sure, not yet, what it means, although we have a strong outspoken opinion.
As a side note, there is one very interesting bullish reversal chart setup in the crypto space right now, we featured it in yesterday’s crypto alert to premium members.