Thread by @MisterSpread

#analysis #DXY #Bitcoin #EGLD # SP500

1/13 Hello everyone,

As discussed here:

https://twitter.com/MisterSpread/status/1504408466663915520?s=20&t=fbrDk2lZ2ixBbsqHAIyWgg

The DXY continued its move lower, broke the Neckline from the DoubleTop pattern but bounced from 97.710 area and failed to print a new LowerLow.

2/13 DXY had a strong rejection from the 99.2 area and closed the week red. The "Double Top" is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs.

3/13 We didn't have the last confirmation from the Price Action, meaning that the price went under the Neckline, but failed to close daily under it. The bounce was decent on lower timeframe, so I'm really curious to see if the DXY will continue lower and the reversal next week.

4/13 SP500 continues its strong bounce from the demand area at 4125-4165 and the reversal pattern played out great so far. After the buyers managed to break through 4380 region, the price broke-out also from the macro downtrend channel.

5/13 The breakout was textbook and we had:
1. Breakout with good volumes ✅
2. Retested the upper downtrend line of the channel ✅
3. Continuation ✅

Measured projected target is 4500, which is only 1% from the current values. Images with before/after of this pattern attached.

6/13 Bitcoin had a decent week until now with a +11% move from Monday until today. The macro trend is still bullish, onchain data looks better and better with large quantities of Bitcoin being removed lately from exchanges.

7/13 Technically, there is not much to discuss about BTCUSDT price action. The daily RSI is around 56 so there is room to grow to the upside. 42k and 46k remain key zones for the buyers to conquer. After that, the biggest test before ATH is around the 52k area.

8/13 Probably the most interesting chart lately is ETHBTC which was under a clear downtrend line since middle of December last year. This changed yesterday when ETHBTC (the ALTS locomotive as big traders like to call it), broke out from this downtrend line and closed above it.

9/13 In order to see a trend reversal, ETHBTC needs to close above 72k sats and print the first High of this new series. I want to see ETHBTC close above the 70k sats on a weekly basis, because corroborated with BTC price action +TotalCap chart is usually a bullish sign for alts.

10/13 Because we are talking about bullish charts, EGLDUSDT printed since 16th a clear as day BullFlag. The 3 conditions for a textbook breakout were also here checked:
1. Breakout with good volumes ✅
2. Retested the upper downtrend line of the channel ✅
3. Continuation ✅

11/13 The first target and resistance for this BullFlag is the $168-170 area which is the 4000 sats level on EGLDBTC. Yesterday the $152 Nemesis showed us that it can also act in a good way, because the bounce from there was on the dot and quite strong.

12/13 $EGLD buyers have a lot of work to do on the upside, mainly because there are a lot of supply zones in the EGLDBTC pair > translating into EGLDUSDT the whole area between $170 to $200 is packed with resistances.

13/13 However, given the wave of strong fundamental news, all of these can be blown away rather quick as EGLD used to do multiple times in the past.

Areas of interest:

Support: $160 , $152

Resistance: $170 , $180

Stay safe, green trades and a great weekend to all.

BONUS: I've left TotalCap chart and comments the last, because it's probably the most overlooked and underrated chart in Crypto. As I said in today's post, ETHBTC chart + TCap breaking the 1.8T mark is building up into a potential new rally from the whole market. 👀🚀