Market Analysis

Weekly Market Insights

Updated: Aug 31, 2024

Published: Dec 16, 2019

We cover $BTC and $ETH. Along with insights into long/short ratios and falling wedge reversal patterns.

A summarised version of the weekly market insight report that was shared in members group chat.

Bitcoin $BTCUSD

On the daily chart, BTC looks like it is forming a falling edge. We are currently at the 6.8-7K support. The falling wedge was broken and retested last week. Potential targets are 7.9K and 8.5K. Below 6.8K is dangerous territory for the entire market. Stops should be placed just below this level and be sure not use more than 3X leverage.

[caption id="attachment_11766" align="aligncenter" width="2462"] Bitcoin overview BTCUSD overview - daily timeframe[/caption]

CME futures opened with a gap and short positions are increasing at on Bitcoin CME futures. No one knows what is going to happen but this level has a good Risk:Reward. I will take my chance. For 7.9K, R:R = 2.9x For 8.5K, R:R = 5.1x. Fundamentally, Bitcoin halving is less than 5 months away. If you look at the history of halvings. Bitcoin starts to rise 6 months before this iconic event.

The CME Futures Long & Short Ratios shown above are accesible via Bloomberg Platform.

[caption id="attachment_11767" align="aligncenter" width="848"] CME long/short ratios CME Bitcoin long/short ratios[/caption]

Ethereum $ETHUSD

Ethereum broke faling trendline and retested. Price is currently at the support and fib 0.786 level.

[caption id="attachment_11768" align="aligncenter" width="2464"] ETH weekly update ETHUSD overview - daily timeframe[/caption]

I think it is a good buy region for a swing trade. Buy spot or leverage should not be more than 2X. Build a position now and HODL in 2020. You can partially buy in the green zone. I am planning to hold this position. Position sizing and patience are very important. Be careful, do not risk all your account in one trade.

Stop: $120 Min. target: $170