Bitcoin (BTC/USD) Latest Mini Bull Rallies In A Bigger Bear...| MENAFN.COM

Wednesday, 10 August 2022 05:58 GMT

Bitcoin (BTC/USD) Latest Mini Bull Rallies In A Bigger Bear Market

(MENAFN- DailyFX) Bitcoin (BTC), Ethereum (ETH) Charts and Analysis:

  • Bitcoin is stuck in a holding pattern.
  • Ethereum outperforms Bitcoin over the week.

Bitcoin has given nothing away to traders this week with muted price action between $19.7k and $21.7k seen over the last 5 days. A marginally better tone in the equity space has helped to stop recent declines as markets begin to price in recessionary fears and interest rate cuts at the back end of 2023. While the slightly better risk-on tone is preventing further falls, one positive for the cryptocurrency space is the lack of selling this week after a raft of negative news. Crypto negative news flow to have the market of late includes the Terra/Luna blow up, liquidity problems at 3AC, while transfers and withdrawals were halted at crypto lending companies Celsius Network and Babel Finance. If this is the end of the bad news, and that is a big if due to the inter-connectivity seen between crypto companies and tokens, then a small relief rally may soon follow. It should be noted that short-term relief rallies within a larger bear market – and the crypto market is in a bear market – can be confusing and costly if you don't stay true to your trading discipline.

The daily chart shows Bitcoin has pared some of its recent losses but in truth only a very, very small part of the heavy sell-off that started last November. While bullish traders may find solace from the double bottom around the $17.7k area, the market is still $6k away from a prior trading zone and support level around $26.5k. This is the first target, and trading zone, that Bitcoin needs to reclaim before any thoughts of a further push higher can be entertained.

Bitcoin Daily Price Chart – June 24, 2022

Chart via TradingView

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The second-largest crypto by market capitalization, Ethereum, has had a slightly better week than Bitcoin and out-performed its peer by around 9% over the last 7 days. Again this outperformance should be put in the context of the sharp underperformance of ETH/BTC since mid-May. A start, and maybe the 0.0500 level is a line in the sand for some, but again we are most likely looking at a small bear market rally.

Ethereum/Bitcoin Daily Price Chart – June 24, 2022

Chart via TradingView

What is your view onBitcoin – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1 .


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