ππ Traders will be liquidated! Time to short the stock market?
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Chart #1 - Ethereum/Bitcoin Ratio (ETH/BTC) 3-Day Chart
Chartist: Sheldon
(For the chart screenshot, click here.)
Over the last two weeks, the ETH/BTC ratio has found support at 0.063, where the weekly support line from March 2021 intersects.
If it holds support, we could see a trend reversal. If so, the ratio could reach 0.068 and even touch the weekly resistance line at 0.07 - 0.072.
But if it breaks support, it could head to 0.06. That will be massively bullish for BTC, as it outperforms ETH.
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Chart #2 - S&P 500 (ES1!) 1-Day Chart
Chartist: Kyle
(For the chart screenshot, click here.)
The ES1! has reclaimed its range's 0.75 level, which means its next target is its range high.Β
Now, in the same way that bitcoin will likely push higher to capture liquidity, the same could be true for the ES1!. So, if you see a sweep of the range highs, although emotions will start kicking in as it will feel like the market is breaking out, the price will most likely get rejected there - meaning it will be an opportunity to short resistance.
And of course, all that will have a spillover effect into crypto.
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Chart #3 - Bitcoin (BTCUSD) 4-Hour Chart
Chartist: Kyle
(For the chart screenshot, click here.)
As you can see in the chart, bitcoin bounced off its mid-range level.
I suspect the price could push up one more time to $30,000 to capture the cluster of liquidity built up by shorts who have set their stop losses above the prior two weeks' worth of candles.Β
That would be an opportunity to exit the market, as prices will most likely break back into the range, and bitcoin will experience a deeper pullback to possibly even $25,000.
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Chart #4 - DXY 8-Hour Chart
Chartist: Sheldon
(For the chart screenshot, click here.)
Over the last week, the DXY has been ranging and consolidating between support at 102.00 and resistance at 103.50. Now itβs a waiting game to see which way the DXY breaks out.Β
A break of support could take the DXY down to 101.50 - an area that held strong in January. And a breach of 103.50 and the descending daily resistance line, would see it head to 104.00 - 104.50.
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Chart #5 - Bitcoin Fear and Greed Index
The Bitcoin Fear and Greed Index is sitting at 63 today, indicating Greed.
The highest the index has been over the past seven days is 63, and the lowest is 57.
Overall Market Sentiment (Banterβs Take)
In essence, we are looking for one more push higher and then a deeper correction for both crypto and stocks. The final push up will likely be driven by short liquidations, which means it could be quick and short-lived.
Stay safe my friends!
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