May 24, 2022

Expected upward movement and volatility - technical analysis of May 5, 2022

What you need to know about BTC and ETH price charts here and now.

Daily chart

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Fine. We received in accuracy is the movement and volatility thatexpected, with a break of the falling wedge and $39,218 resistance. It looks like the price is ready to come back and test these levels as support, which would be a logical long entry point for scalpers. Bitcoin is still making big lows and a rebound from the lower boundary of the ascending channel “technically” allows us to count on reaching the target level at its upper boundary.

But, again, this is all speculation. Charts are just ideas.

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Time to pay attention to it. Bitcoin is forming a potential hidden bearish divergence which, if confirmed, will invalidate the bullish and signal further declines.

However, there is no confirmation yet.At the time of writing, even its existence is too early to state. To confirm the signal, it is necessary that the price closes lower, accompanied by a pronounced decrease in RSI. It makes sense to pay attention to this, nothing more. Also, hidden divergences are usually a comparatively weaker signal.

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Bollinger Bands, Bollinger Bands remaincomparatively narrow, even after the volatility of recent days. Most notably, the price finally broke above the middle line of the indicator, below which it had been trading for a month. Now the price is testing this level as a support. In case of a successful test, the next stop should be the upper boundary area.

ETH / BTC

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I keep following the ETH/BTC chart in searchhints and signal for the entire altcoin market. As you can see, the price is still in a falling wedge, which should break out at some point. Simple signal lovers can also note the golden cross of the 50- and 200-day MAs when a short moving average crosses upwards over a longer one. In my opinion, this is generally a lagging indicator as moving averages are the result of past price action. However, when the price interacts with the lines in the crossover area, you can usually see a strong reaction to the corresponding level, as in this case. The safest entry point here, in my opinion, is a breakout of the upper descending blue line.

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One can also state the formation of the famous brontosaurus pattern. Of course, this is a joke, but in fact, if you look closely, it can be seen all the time.

ETH / USD

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ETH/USD has broken through the downward resistance and nowran into the resistance of $2950. The safest (although nothing is guaranteed) entry points here, in my opinion, is a retest of the downlink as support, or a retest as support of $2950 after a close above this level. The trajectory outlined on the chart is an ideal scenario, but I am completely unsure of its implementation, unless the entire market as a whole unfolds.

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