Cryptocurrency markets were quite mixed during the trading week, as the two biggest ones, Bitcoin and Ethereum, both gained, while smaller altcoins underperformed. Bitcoin was up over 5%, while Ethereum was the big winner for the week, gaining almost 8%. Cardano continues to underperform, losing over 5%, while Ripple also fell, albeit just slightly. Here are the charts that matter:
The Bitcoin market has bounced somewhat this past week, as the $44,000 level has offered a bit of support. Currently, the nine-day EMA is trying to break back above the 20-day EMA, showing a bit of momentum picking up again. The histogram on the MACD is starting to reach towards positivity again as well, further validating the idea of upward momentum.
The $50,000 level above is significant resistance and it could suggest that we have a bit of a “range” that extends to the $52,000 level. Currently, it looks as if the market is trying to recover the uptrend, but with the moving averages going sideways more than anything else, it makes quite a bit of sense that the market stays in a relatively well-defined range between $44,000 on the bottom and $52,000 on the top.
Cardano has fallen again during the week, dropping roughly $0.25. Furthermore, the 9-day EMA has crossed below the 20-day EMA, showing that momentum is starting to shift towards the downside. Looking at the crypto markets, both Bitcoin and Ethereum are showing signs of strength, but altcoins such as Cardano are struggling.
All of this being said, it is very likely that the $2.00 level is an area that will attract a certain amount of attention. The MACD still shows a separation of the moving averages towards the zero line, so it does look like the Cardano markets continue to go lower. That being said, if Bitcoin suddenly spikes, it is very likely that Cardano could find a bit of a bid based upon the fact that Bitcoin is the main driver of most markets longer term.
The Ethereum market had rallied initially during the course of the week but has given back some of the gains as we are hovering now around the $3,400 level. The 9-day EMA is presently going sideways right along with the 20-day EMA, so it looks as if the market is flattening out just a bit after the impulsive run higher.
It is also worth noting that the 50-day “High/Low” indicator still shows positivity, so it’s possible that if we drop towards the $3,200 level, there will be value hunters in that general vicinity. The 38.2% Fibonacci retracement level is right around there as well, so that also lines up quite nicely with the uptrend.
It should be noted that Ethereum has been one of the leaders for a while, and a little bit of profit-taking at the psychologically important $4,000 level above makes quite a bit of sense. This is especially true as the US dollar has been strengthening, which will create a little bit of a drag in the marketplace.
All things being equal, Ethereum is one of the leaders when it comes to the crypto markets, right along with Bitcoin. If these correct, we should generally see the same type of longer-term attitude in other markets. This is simply one of those times when crypto traders are trying to take a bit of profit out of what had been a substantial move higher.