Hello Trader! Welcome to the cryptocurrency weekly analysis market analysis crypto market. On our weekly analysis, we discuss crypto market fundamentals, behaviours and sentiments and on the technical analysis, we strictly adhere to demand and supply.
Litecoin dropped from the last week high of $102 to this week low of $75 after price rallied to the weekly supply zone ( hit your charts for more clarifications). Further technical analysis shows a clear price and MACD divergence on the 4 hour time frame as the coin price approached the weekly time frame supply zone. And we expect this price drop as the supply gains more dominance over demand, in other words, the market is on a short term downtrend till we get to a daily demand zone of $61 where we could be looking forward to buy the coin again.
From last weeks technical analysis I pointed out that the price of Etherum has reached a clear fresh supply zone on the daily time frame (resistance zone) the sell indication was confirmed when a clear divergence was spotted on the 4 hour timeframe with the price and MACD indicating that the bullish strength is fading out and the buyers are taking their profits by selling off the assets. This simple analysis can be justified as price drops from last week high of $189 and hits a low of $161. We expect a consolidation around this price. However, the price may fall to the demand zone on the daily chart between $144-$146 where we expect the buyers to pump again.
We clearly pointed out the possibility of this price making a retracement after hitting the 200EMA which serves as our dynamic support/ resistance with confluence of supply zone on the daily time frame. The price dropped from last week high of $0.38294 to this week low of $0.31391 hit the current demand zone and rallied up to the current Price. We expect a bullish ride this week but we are advised to buy when the bearish momentum is exhausted and the demand is in control.
Bitcoin being the master of all coin no doubt drive the crypto market price. From the fundamental analysis, the current market supply of bitcoin stands at about more than 17million which is more than the previous week supply. This shows that there is more supply than demand. From the technical analysis standpoint, there is a clear price and MACD divergence and the bearish Momentum is expected to continue till we hit a clear demand zone at about $4300 – $4600 as this will be a very crucial demand area.
If the price supports above the 200 Day EMA (our dynamic Support and Resistance) at $4,600 then we will almost certainly expect buying momentum. If that doesn’t happen and Price falls below $4,200, then the bear market will still be firmly intact.
Moreso Now is the time to be paying close attention and developing a long term plan based on the Price outcome and which will definitely affect the price of other coins.
That is it, for now, folks, until next week invest wisely.
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