Salute, colleagues!
Well, over the past weekend the cue ball itself did not show any special movements, but its dominance #BTC.D clearly closed at the level and not far from its 1Week low. At the moment, the dominance looks bearish, which may provoke a further decline in the cue ball.
On the cue ball chart itself, $66K-66500 remains an important support level for the bulls. This month is our last working week and, looking at 1M, closing the current candle below the above-mentioned level will most likely lead to the development of a bearish engulfing and a continuation of the decline.
On smaller TFs (8H), the second shoulder of the Head and Shoulders pattern seems to be forming, and if the neck line is broken, the price could easily reach $63K in the near future. That's why I say that for growth it is important to hold and gain a foothold above $66K-66500, maintaining the local upward trend. Otherwise, the price will continue to move along the downward channel in a wide range.
The news background for crypto can be positive, especially that there are almost 5 months left before the US elections and two presidential candidates (Biden and Trump) are using the cryptocurrency agenda as one of the ways to lure the votes of the younger generation, changing their attitude and opinion about crypt. Trump's loud statements are especially noticeable.
For crypto traders, especially those with a bullish attitude, this is a good period, if we also take into account the history of price charts, the pattern of market growth in the year of the US presidential election. This once again confirms our expectations of growth from the second half of this year and the beginning of next year.
But before that, I would like to see another decline towards the support of the downward channel in the area of at least $55K. Considering the decline in dominance, this is quite realistic.
Ethereum looks more cheerful and stronger than the cue ball, which is also confirmed by the exit from the downward channel on the ETH/BTC chart
The potential for ETHER to gain strength is enormous, considering how long Ether has shown weakness in the downward channel. As I said in previous reviews, the immediate target will be the $4K-4100 resistance zone.
Below this zone, I expect to see pro-trading or a small correction to the area of $3800, followed by continued growth. The news background is also important for this growth, especially since ETF-ETH has been approved, but it is currently unclear how long the S-1 approval process and entry to the markets will take.
Taking into account the growth of the overall cap of#Totaland the decrease in the dominance of #BTC.D, it will be easier and simpler for ether to grow. A little later I expect that all the other alts will follow Ether.
Thank you for attention!
We wish you profit, elation and a productive last working week of May!
