Bitcoin and Ethereum prepare for a correction in a secular uptrend

[ad_1]

Both Bitcoin and Ethereum have had a very good few weeks. Both tokens recovered very quickly after a deep pullback that suddenly reversed in the depths of the banking crisis. However, in this current market environment, there are no lasting trends. All trends tend to last between 1 and 3 weeks. Crypto is no exception, any crypto bull run in 2023 lasted a maximum of 3 weeks. Case in point: XRP is up 3 weeks even though XRP has the best long-term chart setup of 2023. What’s next for BTC, ETH, and the rest of the crypto market?

Speaking of a sudden move in crypto, when the rally in crypto and major indices like the S&P 500 began, there was so much pessimism that we were lone voices writing the following articles:

Big Opportunity: Tech stocks ARE the new leaders

Market decline target achieved What now?

How do you know if there is systemic risk in this market?

The consensus was that a big downtrend was beginning, we said the exact opposite: no downtrend until and unless our Systemic Market Crash Indicator collapses.

Let’s first look at the BTC and ETH charts, starting with the daily, then look at the weekly (long term, big picture), to answer the question of what’s next for the crypto.

BTC recorded a nice reversal. In our Crypto Investment Research service, we reported on Tuesday, April 18 that BTC encountered major resistance, the pullback began a day later. This is because 30.3k marked the 50% retracement level of the big decline between Nov 2021 and Nov 2022.

The lower levels that should be tested in the next 4-8 weeks are 25k and 22k. Below 22k there is good support, we don’t see a new downtrend that will break 20k on the downside.

The long-term BTC chart is quite impressive. On the one hand, because it shows the extent of the decline since November 2021, on the other hand because it shows the extent of the upside potential. In other words, the recent run from 20,000 to 30,000 is just a small run in the grand scheme of things.

At the same time, everyone can see how fragile and young this current reversal still is. There is more work (and time) needed for it to become a really solid reversal structure that will allow for a significant and sustained upward run.

Similarly, ETH, the other crypto market leading indicator, has a comparable profile to BTC.

The daily has resistance at exactly the same level where BTC had its resistance: 2090 USD. This is where ETH started to retrace.

The long-term ETH chart, frankly, looks more aggressive. We believe there is a lot of upside potential here, but the reversal is also young and fragile.

Conclusion: While the recent race was impressive, that’s mainly because it happened at a very unexpected time. The run in BTC was almost 50%, that in ETH around 35%.

The upside potential for both is huge, but a break is needed as the charts need more time to build a solid base. Remember, the longer the base pattern, the more powerful the next move.

In our crypto research service, we will track relative strength in our 30 token watchlist. We also expect to hit at least one unicorn (a multi-bagger) over the summer, which our chart patterns predict will be a bullish period for the crypto. Until then, it’s worth being patient and closely monitoring the tokens that show relative strength!

[ad_2]