Bitcoin presses on despite bearish divergences, but momentum appears weak
Bitcoin price continues to rise steadily, however, it is clear from CVD and on-chain analysis that coins are being distributed within this range. Bitcoin volume is also starting to die off, potentially signalling the weakening of this trend. Perhaps a final push toward the nearest resistance of $22,500 may take place but the rally is likely to end around that.
S&P 500 remains at 4,024, looking to break through resistance. On the other hand, DXY continues to weaken, and is sitting at a weekly support level of 101.632, desperate for a bounce.
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Bitcoin Technical Analysis
Bitcoin continues to climb higher despite losing momentum from spot buying as well as overall volume in general — both of which typically signal a bull trap before a dump. Looking at the liquidation map we can see a sentiment shift from bearish to bullish, with most if not all the liquidations mainly clustered around $16,500 - 17,500. As bearish signs keep coming up, it is likely, the coming retracement will not just be a correction before we move high but a proper drop.
Ethereum Technical Analysis
Ethereum is in the same boat as Bitcoin — the CVD tends to show distribution and volume keeps decreasing as the price slowly moves upward. Looking at liquidations there is a massive cluster of high leverage longs present around lower $1,200. Nothing looks bullish on the chart, however, if Bitcoin wants to push one final time as suggested above Ethereum will also see a nice move, but ultimately it is likely to come down again.
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Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.