Market Outlook #246 (twentieth November 2023)
Howdy, and welcome to the 246th instalment of my Market Outlook.
On this week’s put up, I will likely be masking Bitcoin, Ethereum, Polygon, Avalanche, Uniswap, Beam, Sushi and LayerAI.
Most of those have been reader requests this week – as ever, ship these throughout to me for subsequent week’s inclusion if there’s one thing particular you need taking a look at.
Bitcoin:
Weekly:
Each day:
Worth: $37.263
Market Cap: $728.411bn
Ideas: If we start by taking a look at BTC/USD, on the weekly timeframe we are able to see that value closed final week at marginal new yearly highs, having depraved decrease in direction of the prior weekly low earlier than bouncing again above the $36k space and shutting shy of $38k resistance. While this was an awesome present of power from bulls and there are nonetheless no indicators but that now we have topped on this timeframe, the actual fact we now have three consecutive weekly lows unswept because the breakout candle is one thing to bear in mind for once we inevitably do mark out an area high. We’re sat proper round prior assist right here and above $38k now we have no resistance into $39.6k, which I believe could be a pit cease earlier than the inevitable run into that main confluence of resistance at $42k: that is the place now we have an necessary historic stage in addition to the 50% fib retracement of your entire bear market. Little doubt, if we are able to settle for above final week’s excessive this week, then that’s the extent we’re headed for earlier than marking out any high. If, nevertheless, we wick above $38k and shut the weekly again under it, I believe it seems to be extra possible we want some type of sweep of draw back liquidity earlier than continuation.
Turning to the day by day, we are able to see that value is making greater lows on the day by day having reset RSI after the momentum divergence, and prior resistance has grow to be assist at $36k. Holding above that early this week is essential – break under it and I believe we’re taking a look at a transfer again in direction of $34.2k in any case. Above it, nevertheless, I believe we proceed to push, with day by day closes above $38k opening up the following leg greater after this consolidation in direction of $39.6k after which $42k. Nothing else so as to add right here actually besides that, if we do get a dip after this big rally, I’d be trying on the vary between $31k-34k as a first-rate shopping for alternative for 2024.
Ethereum:
ETH/USD
Weekly:
Each day:
ETH/BTC
Weekly:
Each day:
Worth: $2029 (0.05447 BTC)
Market Cap: $244.205bn
Ideas: If we start by taking a look at ETH/USD, we are able to see from the weekly that value moved decrease to retest the trendline as assist, bouncing and shutting proper again close to the weekly open, slightly below reclaimed resistance at $2037. There’s nothing about this that at the moment seems to be bearish to me: now we have a powerful trendline breakout, with that trendline appearing as assist, and consolidation proper at an necessary resistance stage. Above $1850, this stays the case, in my opinion. If we shut the weekly again under $1850, it’s possible we transfer to retest that $1717-1740 vary as assist, the place bulls would search to type a higher-low. However for now, I anticipate to see any acceptance above $2037 this week result in $2172 giving manner after which a squeeze to fill within the hole into $2425. Dropping into the day by day, we are able to see that RSI has reset as value retraced into resistance turned assist, failing to shut under $1957 on a number of makes an attempt. From there, value has pushed up into $2036, which is essential resistance. Bulls wish to see a day by day shut above this adopted by that stage appearing as assist. If we see that, lengthy your longs in direction of $2425. On this timeframe, indicators of weak point could be rejection right here adopted by a day by day shut under $1957.
Turning to ETH/BTC, we are able to see that value rejected above the 200wMA once more final week, with 0.0577 appearing as resistance and sending the pair again under 0.055, with it closing at 0.0538. We’re at the moment sat between reclaimed assist at 0.053 and the 200wMA as resistance. Clearly, the bullish situation right here could be a weekly reclaim of 0.055 as assist – in that situation, I believe we see ETH outperform for just a few weeks, pushing up into that trendline. Nonetheless, if we now reject the 200wMA once more and begin closing under 0.053, I believe the yearly lows at 0.051 get taken out and value runs into 0.0487. Wanting on the day by day, we are able to see how 0.0533 is appearing pretty much as good assist at current however day by day construction is bearish following the break again under 0.055; bulls really want to see that stage flipped as assist as soon as once more after which we are able to anticipate to see one other take a look at of 0.0577. Very clear construction right here.
Polygon:
MATIC/USD
Weekly:
Each day:
MATIC/BTC
Weekly:
Each day:
Worth: $0.858 (2303 satoshis)
Market Cap: $7.972bn
Ideas: If we start by taking a look at MATIC/USD, on the weekly we are able to see from the weekly that value has rallied for a number of weeks after forming a backside above reclaimed assist at $0.47, pushing by way of the 200wMA a few weeks in the past after which rejecting simply shy of $1 resistance final week, with value now sat above reclaimed assist at $0.75 and under $0.93 as resistance. From right here, I’d anticipate to see the 200wMA act as assist if that is to stay short-term bullish, with any weekly shut again under $0.75 opening up a deeper retracement in direction of $0.62 to type a higher-low above the September-October backside there. If $0.75 holds this week, I’d anticipate one other crack at $1 to observe with nothing above that for an additional 30% into $1.31. Dropping into the day by day, we are able to see how value rejected proper across the 38.2% retracement of the bear market, with the 50% confluent with that $1 space. Clearly, for bulls, $0.92 can’t now act as resistance on a retest from under, else now we have a decrease excessive and one would think about a deeper pull-back would observe, with the 200dMA aligned with reclaimed assist at $0.68 as a primary space of curiosity. Settle for again above $0.92 and that is gonna squeeze a lot greater, in my view.
Turning to MATIC/BTC, we are able to see right here that value rejected under the 200wMA, confirming it as resistance at 2450 satoshis and is now sandwiched between reclaimed assist at 2100 and that 200wMA and prior assist. Closing the weekly again above this might be a massively promising signal for bulls, and I’d anticipate a spot fill to observe again in direction of 3200 satoshis from there. If we shut the weekly again under 2100, that invalidates lots of this construction and bulls are again at sq. one, with the multi-year lows at 1700 satoshis in plain sight…
Avalanche:
AVAX/USD
Weekly:
Each day:
AVAX/BTC
Weekly:
Each day:
Worth: $22.17 (59,514 satoshis)
Market Cap: $7.926bn
Ideas: Starting with AVAX/USD, we are able to see from the weekly that value has been on a tear this previous few months, rallying from the multi-year lows at $8.60 all the way in which into $24.77 final week, closing marginally above assist turned resistance at $21.70 that had capped the highs all 12 months. Quantity continues to develop but when we now see value break again under $21.70, I’d be in search of $18 to carry as a higher-low given the power of the rally. Wanting on the day by day for extra readability, we are able to see how above this stage there’s little or no resistance in any respect again into $30, so any alternative to get lengthy on a pull-back right here could be golden; there’s some momentum exhaustion creeping in and if we do see value retrace into $18, I will likely be in search of indicators to get lengthy on the decrease timeframes, with a view to carry for that $30 stage. Beneath $18, a deeper pull-back would have us trying on the vary between $12-15 for entries. In fact, if we aren’t gifted a pull-back in any respect and $21 acts as assist this week, a day by day shut above $25 will possible result in the remainder of that vary getting crammed in fairly shortly.
Turning to AVAX/BTC, we are able to see that value has rallied proper into a serious stage of prior assist turned resistance, proper on the Might 2022 backside round 60k satoshis. Final week, value depraved above this stage however closed again on the stage, and we now have a very sturdy vary of reclaimed assist under at 48.5-41k satoshis the place a higher-low might look to type. If we do see that higher-low formation, and that aligns with an entry primarily based on the Greenback pair, the following space of resistance above 60k is that trendline and the 23.6% fib retracement at 84k satoshis…
Uniswap:
UNI/USD
Weekly:
Each day:
UNI/BTC
Weekly:
Each day:
Worth: $5.26 (14,109 satoshis)
Market Cap: $3.969bn
Ideas: Starting with UNI/USD, we are able to see that value has lastly turned market construction bullish once more on the weekly after deviation under assist at $4.21 led to a bounce off trendline resistance turned assist and subsequent rally again above the extent, with value closing firmly above $4.75 and persevering with greater. We are actually sat with $4.75 having acted as assist final week and $5.68 as resistance above; if we are able to maintain above $4.75, I’d anticipate this minor resistance to present manner with $6.30 the foremost stage above to observe for. Nonetheless, if we see value break under that reclaimed assist ultimately week’s low, I’m in search of a return to $4.21 for a possibility at a leveraged lengthy. I do have a spot place however I wish to get levered publicity as near $4.21 as I can get it if doable. Dropping into the day by day, we are able to see how value reclaimed the 200dMA which is now appearing as assist, however given how that performed out final time (August) it offers confluence for the significance of holding above $4.75 right here for bulls. Above $5.68, there’s air into $6.30 after which into $7.50. Let’s see if we get the golden alternative for a leveraged lengthy…
Turning to UNI/BTC, we are able to see that value broke under the double backside at 14.4k satoshis just a few weeks in the past, capitulating into multi-year assist at 12k satoshis after which reclaiming 14k satoshis as assist since. Worth is now sandwiched in between prior assist turned resistance at 15.3k satoshis and assist at 14k. If this stage provides manner once more, I believe 12k is getting taken out and value runs the all-time low at 9.9k satoshis, which might be an unbelievable long-term shopping for alternative if we’re to anticipate UNI to stay necessary subsequent cycle. Till that is again above 17k satoshis, nevertheless, I don’t assume it seems to be notably sturdy.
Beam / Benefit Circle:
BEAMX/USD
Each day:
Worth: $0.0092 (25 satoshis)
Market Cap: $400.281mn
Ideas: While I’m conscious MC is now BEAM or BEAMX, for the needs of study I’ve shared the MC/USD chart right here in order that we are able to see all of price-history.
Taking a look at this, we are able to see how sturdy the reversal has been since turning the 200dMA into assist, with value now pushing up once more $0.93 as resistance, with that stage additionally being the final main resistance stage between right here and the following stage – 100% greater at $1.88. We’re seeing some momentum exhaustion right here as we come into this resistance, so if we’re to mark out an area high it will possible be round right here, however I’d anticipate any pull-back into $0.60 to be wolfed up given the power proven to this point. For these in search of an entry, I’d search for $0.60-0.65 as a primary space of curiosity for spot, adopted by $0.44 in case you are fortunate sufficient to get it. For these already on the practice, benefit from the experience, as I’m anticipating at the very least $4 to be hit in 2024.
Sushi:
SUSHI/USD
Weekly:
Each day:
SUSHI/BTC
Weekly:
Each day:
Worth: $1.08 (2892 satoshis)
Market Cap: $208.653mn
Ideas: Starting with SUSHI/USD, we are able to see from the weekly that value has performed out its bear market in a textbook style, capitulating into $0.48 (simply above the all-time lows) in Might earlier than forming a multi-month vary above this stage. Worth then ripped greater, rallying by way of $0.75 to show weekly construction bullish and persevering with by way of the year-long assist for, 2022 at $0.90. Worth has since been consolidating above that stage as reclaimed assist, and persevering with to carry above this stage could be very promising certainly for SUSHI bulls. If we do get a pull-back, look ahead to a pointy wick under $0.90 in direction of $0.75 and rapid reclaim of the extent as assist. That will be a sign to get lengthy if we see it. If we drop into the day by day for readability, we are able to see how a swift transfer into $0.75 would additionally mark out a retest of prior resistance and the 200dMA as assist, however I don’t know if we’re going to be granted such a possibility. If not, I’d be in search of a day by day shut above $1.30 after which look to lengthy the following pull-back for the vary play again into $2.
Turning to SUSHI/BTC, we are able to see that in contrast to the Greenback pair that is nonetheless capped by trendline resistance from the 2021 highs, however weekly construction is now bullish and value is consolidating above prior resistance at 2700 satoshis. Clearly, the important thing right here for bulls is to carry this stage as assist after which see a excessive quantity breakout above the trendline, reclaiming the Might 2022 lows at 3900 satoshis as assist within the course of. If and once we see that, little question the start of SUSHI’s subsequent bull cycle is underway, in my opinion. If this trendline caps value right here nevertheless and we transfer again under 2700, I believe we see the all-time lows retested, with a deviation and reclaim of 1830 being the golden alternative and certain the spring for the following cycle to start. Let’s see how issues unfold…
LayerAI:
LAI/USD
Each day:
Worth: $0.0124 (33 satoshis)
Market Cap: $3.951mn
Ideas: Lastly, let’s check out LayerAI – a microcap that has began trying very promising, notably given the AI narrative that’s sure to develop in 2024.
If we take a look at LAI/USD, we cam see that value misplaced 97% of its worth from the all-time excessive again in March into an all-time low at $0.005 in October, then rallying off that low to reclaim the June assist at $0.0082 just a few weeks in the past on rising quantity. Worth additionally closed above trendline resistance, turning it into assist, and has since been consolidating between $0.0082 as assist and resistance at $0.012, the place the 200dMA can be sat. We have now day by day bullish construction right here additionally, and I’ve been shopping for inside this vary the previous week, trying so as to add on acceptance above $0.014, with a view to carry for a full cycle (new all-time highs possible, in my view). Invalidation is a detailed again under $0.0082.
And that concludes this week’s Market Outlook.
I hope you’ve discovered worth within the learn and thanks for supporting my work!
As ever, be happy to depart any feedback or questions under, or e-mail me straight at nik@altcointradershandbook.com.
