After the recent breakout of resistances on almost all cryptocurrencies, we have seen a decline this week. Now we need to understand if it was a false bullish breakout – the so-called bull trap – or a retest of the old resistances that have now become supports for a prompt departure.
Losses for Bitcoin and Ethereum are around 7% and for almost all of the cryptocurrency sector.
Among the topics of the week, the discussions on Elon Musk’s new investments on twitter, which could get doge coin off the ground and could give new impetus to all meme coins.
Further factors for a bullish push – especially for Ethereum – are the update of the network called “Merge” and the fact that the reserves of Ethereum on exchanges are at ten-year lows.
On a technical level, the situation has become quite complicated, especially for Bitcoin which shares in the $ 43,570 area and after breaking the resistance in the $ 45,280 area it made a top in the $ 48,240 area, and then reversed to the downside with the supertrend set short. in the area of $ 46,940.
We have the same graphic setting for Ethereum, although less aggressive as a reversal; the fact remains that it has turned short as well, after having made a maximum in the area of 3,580 dollars (red line on the chart) and with the supertrend set short in the 3,450 area, Ethereum is currently quoted at $ 3,220.
Although there are some interesting ideas on some Alt coins, as far as the big ones are concerned, they all seem to be still in the reversal phase to understand if it is a technical reversal or it can continue for weeks.
Surely the geopolitical scenarios – such as war – as we have highlighted in the previous reports, do not help to unravel this dilemma and to provide consistency to a lasting bullish trend.