Bitcoin is struggling to break past the $7,246 resistance which was a strong support before the price declined below it. Even though BTC/USD has now entered the red zone on our chart, we still believe that it is ready to take off and rally much higher. When the price declined into the red zone, it should have crashed hard if it meant to, but the fact that it hasn’t tell us that a move to the upside might be in the offing. The near-term outlook of the EUR/USD forex pair increases the probability of such a move.
The 4H chart for the forex pair shows us that it has now rallied past the 200 MA which means that it could potentially break higher to form a triple top considering it has already broken above the 38.2% fib extension level. The more the price tests a certain level, the higher the probability that it will be broken. This pair has been testing the 38.2% over and over which means that this might be a time for it to rally much higher in the near future. This would be a bullish development for the entire cryptocurrency market because a decline in the strength of the US Dollar means a higher price of Bitcoin in US Dollars.
Ethereum (ETH) presents a clearer picture of what is really going on. The 4H chart for ETH/USD shows how the price has printed the exact same fractal that it did in September, 2019. Based on this, we might have a 20% move in Ethereum (ETH) around the corner. This could comprise of minor retracements along the way but it will come to fruition nonetheless in case of a rally from current levels. We have to see the price test the 200 moving average on the 4H time frame before a major downtrend. The next uptrend is likely to achieve not only that but also a retest of the previously broken market structure. Bitcoin dominance (BTC.D) has room to decline which means that altcoins could rally near term. This is a bullish development for the whole cryptocurrency market. The Fear and Greed Index is also back at “Extreme fear” which means that this might be a good time for contrarians to be bullish on the market.
Jefe Caan , 2019-12-04 18:30:00 ,