The pause button is hit again as the crypto markets slide back into a consolidation pattern

August 4, 2022 - 2 weeks ago

Market interest has once again cooled as the crypto market slips back into the consolidating pattern.

Having given negative vibes at the start of the week, initiated by the US$24,000.00 retreat, Bitcoin still appears to lack the bearish momentum to support a further breakdown.

Based on the technical analysis, the Relative Strength Index (RSI) 3-day period for Bitcoin remains buckled and holds a mixed bias, while the Moving Average Convergence Divergence (MACD) oscillator supports a positive bias, and the ADX (trend) indicator supports a ranging market.

As the bull run has taken the backseat, it is assessed Bitcoin’s primary outlook should remain bullish.

However, we still would need to witness the move (and close) over the US$24,000.00 level to provide the bullish path to explore the region of US$28.600.00, which is expected to trigger profit-taking (if reached).

Crypto traders should remain on their guard in the event of any weather change (meaning in the event of a bearish return).

A decisive break of US$19,000.00 would be devastating for the bulls, as it could trigger a ‘Domino Effect’ for other crypto markets.

Based on the downward trajectory, if breached, it envisages a measured move of around US$16.000.00 to US$12,400.00. Reassess from there.

The immediate support is located at US$22,190.00.

Daily Chart of Bitcoin

Ethereum, the second-largest digital asset by market cap technical pattern, has fallen into a lacklustre period, although not fully in a call to a bearish correction (as of yet).

Based on the technical analysis, the Relative Strength Index (RSI) 3-day look back is mixed, while the Moving Average Convergence Divergence (MACD) oscillator supports a positive bias, and the ADX (trend) indicator supports a ranging market.

With the immediate support of US$1,580 now the focal point for the bears, only a New York close beneath this level may perceive the US$1,700 level as a false break and could reinstate a bearish move to support US$1,280. Reassess from there.

Still keeping in mind that a decisive break of the US$936 support would be devastating for the bulls as beneath this region would reveal a measured down to the trajectory of US$620.00. Reassess from there.

However, with the US$1,580 level intact, it views little resistance until the area of US$2,200. Reassess from there.

Daily Chart of Ethereum

Binance Coin (BNB), the global crypto exchange utility token, surprisingly holds to a somewhat positive pattern as the US$274 support keeps the bullish call in check.

Based on the technical pattern, the Relative Strength Index (RSI) 3-day ‘lookback’ indicator holds positive, while the Moving Average Convergence Divergence (MACD) oscillator supports a bullish bias, and the ADX (trend) indicator supports a ranging market.

As the recent bounce keeps the upside momentum in play, the market bulls are currently challenging the region from US$300.00 to US$312.00. Reassess from there.

Conversely, beneath US$274.00 would expose the region to US$260.00, with US$248.00 located beneath. Reassess from there.

Daily Chart of Binance

Without sounding like a broken record, Cardano’s (ADA/USD) outlook holds to a bullish call, which could see a move back towards the US$0.62/US$0.63 objective, while the (broader horizon/long-term view holds to the shores of US$0.72).

Based on the technical assessment, the Relative Strength Index (RSI) 3-day ‘lookback’ indicator holds a weak positive bias, while the Moving Average Convergence Divergence (MACD) supports a weak positive signal, and the ADX (trend) indicator supports a ranging market.

Although renewed demand is expected to emerge from the area of US$0.45-46, a break here could raise bearish concerns.

A New York close beneath US$0.42 would be devastating for the bulls, as this could open the decline further into uncharted waters and give a measured move from a US$0.40 break to US$0.30-US0.33.

Daily Chart of Cardano