Weekly Technicals Pro - Volume 81

Going to be a big week

— Barry Silbert (@BarrySilbert) November 7, 2021

Welcome to Weekly Technicals Pro where we analyse various crypto assets on the weekly timeframe to depict the most probable outcomes over the mid-term.

Disclaimer: Not financial nor investment advice. Any capital-related decisions you make are your full responsibility and only you are accountable for the results.

Market Sentiment

Sentiment has been stagnant for roughly 5 weeks now and that is because price has been rangebound during that period of time. We keep an eyes on the Fear & Greed index mainly because it acts as a caution gauge when momentum runs too hot. Nonetheless, this metric is only useful when it reaches either side of the extremities where it currently is not.

The metric that does assist right now in mapping out where the market is most likely to go is the funding rate.

Funding Rate

TLDR: When the funding rate is too high, the market is in an unsustainable rally. The same can be said when funding goes negative.

Right now, we're seeing very average levels of funding, lower than even what we saw during the first breakout of the year from $20,000. This communicates to us that the market won't be limited by leverage in the system at this point as traders aren't blindly "ape longing".

Market Indexes

Total Market Cap

The squiggly line is lighting the path forward. Up next is $5T.

The R:R is slowly diminishing for new entries as price move away from the $2.5T level of support.

Altcoins Market Cap

We've seen the breakout from $1.5T on the daily timeframe and now on the weekly as well. This has activated the cup & handle bullish formation that holds a technical target of $2.4T.

Bitcoin

Bitcoin is properly maintaining support above $60,000 and has just registered its highest ever weekly closure. Given the maintenance of the latter as...