Bitcoin (BTC) continues to struggle to make inroads while other tokens such as Ethereum (ETH), Binance Token (BNB) as well as a plethora of dog-themed tokens flourished. Some participants are drawing the current parabolic price action in alts to the bull market of 2017 during which Bitcoin dominance fell to under 35%. ETH which only just traded above $3k for the first time last week continued its charge, soaring above $4k on the back of surge in decentralised finance (DeFi) flows and the anticipation of a technical adjustment this summer. The total value of the crypto market has risen by an incredible 920% over the past year.
While TDX shares the overall bullish market sentiment, we always keep an eye on our potential downside risk, although we are uncertain what could be the catalyst at this time. We continue to suggest gradual profit taking, possibly via short-dated covered calls.
🐮The bulls attempt to take prices back above $60k (1) was thwarted by profit-takers at the $59k mark before an early morning dip briefly took prices below $54k. We see good resistance at $57,500 (2) and $60k with a strong move above $57,500 needed to regain bullish momentum.
🐻 An inability to hold support at $56k (3) could lead to a retest of the morning lows ($53,500) (4) and then potentially down to $51,850 (5).
🐮As noted in our commentary last week (4/5), ETH is trading in new territories and could take very little time to trade up from $3k to $4k — and it took less than a week to do exactly that. Once again, Monday’s high of $4,200 (6) is now the only resistance in sight and a break of that could possibly take us to the psychologically significant $5k level.
🐻It would appear that the market is trying to get comfortable with the $4k (7) handle, however, a break below $4k could take prices back to $3,780 (8) and then $3,570 (9).