August 8, 2022

Crypto Market Near S&P 500 Support - Technical Review September 15, 2021

Narrow trading range in BTC / USD after closing above $ 45K support and retesting breakout level in ETH / USD in another review from Cred and DonAlt, mailing list authors Technical Roundup... Also in the program: a strong upward momentum in Tezos and a small commentary on the situation in the S&P 500 index.

BTC over $ 45k support

Chart executed in TradingView

Chart executed in TradingView

Bitcoin is trading between $ 45K and $ 46.4K against the dollar.

The narrowness of this range reflects the apparent volatility in the market after a significant drop last week.

Support at $ 45K on the weekly chart at the close of the candle was held. This is a positive signal that increases the chances of a breakout of this short-term range upwards rather than downwards.

If this rally continues, what will beto signal a close above $ 46.4 thousand, then a retest of $ 49-49.7 thousand is likely. This is an area of ​​significant resistance, which is clearly indicated by the strength of the price rollback after a false breakout of this level.

In addition to the short-term range, the most important are the $ 40K and $ 50K areas.

Below $ 40 thousand, the thesis about a smaller minimum in the macrostructure becomes relevant. Above $ 50K, the trend is likely to continue to new record highs.

Everything else is more noise than signal.

ETH: retest $ 3000

Chart executed in TradingView

Chart executed in TradingView

In ETH / USD, the situation also does not look calm and stable, as in the crypto market as a whole.

Support is formed by the previous trading range (~ $ 3000 +), resistance is immediately higher, at the level of $ 3430–3500.

If the upper limit of the range isovercome, then there is a significant probability of movement to new record highs. If the market falls below, then $ 2,750-2,890 appears to be an attractive untested support level.

The current range ($ 3200-3400) is somewhat narrow for trading on higher timeframes, but in general, the support for $ 3000 is still valid, as well as in BTC / USD.

Strong bullish momentum in Tezos

Chart executed in TradingView

Chart executed in TradingView

Tezos demonstrates strength against the background of the general weakness of the crypto market.

This is generally a good indicator.availability of demand for the asset. In other words, if an asset shows strength against the background of the weakness of the market as a whole, then it is likely that it will look even stronger against the generally favorable background. There is also news of Tezos' upcoming NFT collaboration with OpenSea, which could be a good tailwind for this market.

But, as always, a significant drop in bitcoincan ruin a brewing party in the bud. So a bet on any altcoins assumes a certain amount of strength and stability in the main cryptoassets.

Finally, how the situation looks from the point of view of TA. In essence, it develops as a breakout into the zone of defining new price levels. Double tops are not very common in practice.

However, any weakness in BTC / USD orpost-breakout indecision potentially refutes this thesis. The best possible scenario here is a strong continuation of momentum with no pullback or meaningful consolidation.

Pullback in the S&P 500

Chart executed in TradingView

There is a definite correlation between the bitcoin rate against the dollar and the S&P 500 index.

More specifically, BTC / USD periodically correlates positively with the S&P 500, especially downward. That is, when the S&P 500 falls on the crypto market, a sale also occurs.

The crypto industry, of course, is not immune to major dips in traditional markets. You won't have to look for examples of this for a long time.

Currently, the S&P 500 index has corrected to the 50-day moving average (MA).

At this level, the S&P 500 tends to form a bottom and, more importantly, the upward market structure (higher lows / higher highs) remains in place from the March 2020 pandemic lows.

In general, the situation in the S&P 500 looks like a standard bullish retest of the 50d MA.

If “this time everything is different” TM and 50d supportMA in the S&P 500 will not work out, then any signs of short-term and medium-term optimism in the crypto market, apparently, will be destroyed along with this support.

This is something worth adding to your watchlist for the next week or so.

BitNews disclaim responsibility forany investment advice that this article may contain. All the opinions expressed express exclusively the personal opinions of the author and respondents. Any actions related to investments and trading on crypto markets involve the risk of losing the invested funds. Based on the data provided, you make investment decisions in a balanced, responsible manner and at your own risk.