BTC/USD, ETH/USD BTC.D Technical Outlook, Edition #55 (18/07/20)

Bitcoin defends a close below USD 31K and consolidated nicely after three failed attempts from the bears on the H4 BTC/USD chart below.

Bitcoin, BTC/USD - 4 Hour (H4)



These recent bounces along major local support is a decent sign of life that buyers are still around, however, BTC/USD requires a close above USD 33K before our bulls have any chance of a reversal higher.

Ethereum, ETH/USD - 4 Hour (H4)



If we extend our analysis across to the ETH/USD trading pair, Ethereum must clear USD 2040 before a reversal is on the cards.

Structurally speaking, ETH/USD does appear sounder than BTC/USD, although, after peering at the BTC.D chart, it may be a better idea to let Bitcoin do the steering before touching altcoins.

Bitcoin, BTC/USD - 1 Day (D1)



Bitcoin Dominance is a great altcoin indicator because generally as Bitcoin gains market cap dominance, many altcoins, especially medium to low cap coins/tokens begin to fail, as market participants begin to consolidate into bigger caps for a safer position.

Q’s Conclusion

The bulls are defending the line against bears, and we are still trading within a tight range. It would be wise to avoid trying to go in in such a tight range. The dropping volume and BTC.D climbing however could give us hints as to where the market might be heading.

See you again for the next update.

- q