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JAN 24, 2024

Weekly Market Review: In-Depth Technical Analysis

by Crypto Alpha

As part of our commitment to providing insight and market opportunities that can be exploited to generate potential profits, we bring you the weekly technical market review.
CRYPTO ALPHA TECHNICAL MARKET ANALYSIS REVIEW (SERIES)

BTC, ETFs, AND, PRICE

It was a historical week for $BTC and the entire crypto market, as several Bitcoin ETFs are approved by the U.S. Securities and Exchange Commission (SEC).
What Is an Exchange-Traded Fund (ETF)?
An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies – Investopaedia.com.
On the 10th of January, the U.S. Securities and Exchange Commission (SEC) approved the market's first 11 Bitcoin (CRYPTO:BTC) exchange-traded funds (ETFs). This means that crypto adoption and exposure have eventually crawled into Wall Street, the interest of large financial institutions and retail investors all over the globe. Before the news of the approval, the price of $BTC maintained a consolidation between $40,000 and $45,000. The news gave the market a breakout to $49,000 before eventually failing and dumping back to the low of $41,600. This implies that the market has absorbed all the optimism of the ETF approval. The dust settles around $BTC and its ETFs, $ETH seems to be the next in line to get its own ETF approval, therefore interest and liquidity are being driven into the price of $ETH.

  “The market is a home of uncertainty (we should never lose touch with such reality), therefore we implore our subscribers to ensure that they protect themselves at all times, not risking/investing what they can’t afford to lose. Trading/investing can involve losing money. As much as we will try to create certainties in an uncertain market, we will only make a review and point out opportunities in the market when the odds are greatly skewed in our favor, it doesn’t mean we can’t be wrong sometimes.”  

Disclaimer
We get into divinity with the chart.
BTC DAILY
BTC Daily
BTC Daily
$BTC seems to have gotten bulls chasing prices trapped at the $49,000 benchmark. After a failed breakout, we anticipate that the price will seek to reach for liquidity at the other side of the current bullish momentum resting at $39,000 and $37,650 respectively. This is a pointer that the bullish rally may have come to a pause on the daily timeframe. We are about to get a retracement to the support levels mentioned above, from where we can safely buy for a bullish continuation above $50,000.
BTC WEEKLY
BTC Weekly
BTC Weekly
The weekly timeframe gives us another perspective from what the daily timeframe is offering. We use the higher timeframe to filter out possible noise that we may have seen on the daily timeframe. It clearly shows that the price of $BTC may be distended lower than our previous expectation as seen on the daily timeframe. The weekly timeframe offers us two liquidity levels that we should expect the market to react from which are $35800 and $34100 respectively, those two prices formed an order block, which is why we are targeting that zone for a bounce above the $50,000 threshold.
ETH DAILY
ETH Daily
ETH Daily
Our last call for Ethereum was a tit-for-tat scenario, as price magnets our liquidity levels from the resistance of $2450 and fell back to $2100 and broke out above $2500. $ETH seems to have momentum in it, this can be attributed to the upcoming ETF approval. This rally may be sustained to further push $ETH to new highs and a possible retest to the liquidity at $3000 which should culminate with the ETF news before a dump back to $2000. Many market participants are pulling their funds from $BTC, funneling it to $ETH to chase potential profits when $ETH gets to $3000.
ETH WEEKLY
ETH Weekly
ETH Weekly
The weekly timeframe on $ETH is in Sync with the daily timeframe. Except we see the price at $2100 or $2000 for us to buy, we cannot hop in at the current market price, or else we get burnt, traders/investors who have positions from our last call can continue holding for a profit target at $3000. We are very optimistic about $ETH price appreciation due to the forthcoming ETH approval.

Final Thoughts

Remember to trade in your own best interest, only commit what you can afford to lose. May the market go with us!
We may make a review of this publication as the market evolves...
If you need a further breakdown, inquiry, or analysis on any particular coin, feel free to email us (cryptoalpharesources@gmail.com).
A prosperous Year to everyone! May the markets go with us!
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