Bitcoin Continues to Consolidate

Neither this post nor any other on cryptofal.com should taken as financial advice. It is not.

After testing down to $28k yesterday in a rapid downturn, BTC found itself hitting strong support and shooting up to test short-term resistance.

While BTC was rejected at this resistance at around $29.8k, it’s now taken a bit of a slight downturn as it struggles to stay above $29k going into the morning. It should be noted that volatility and volume have increased slightly over this past week or so for BTC. It’s likely we could see BTC continue to consolidate in this range while the fiat market continues to struggle. This is especially likely since BTC has recently correlated strongly with tech stocks.

The MFI has been on a downtrend since testing overbought territory earlier this week. It’s very likely that it could continue this downtrend into oversold territory. the MACD seems to be swinging downwards on both its EMA lines as well as its momentum waves. It’s very likely that this could continue downwards as well.

The overall cryptocurrency market is currently just below $1.2 trillion with a volume of approximately $106 billion. This is a bit of an increase in volume from earlier in the week. BTC dominance has taken a jump up to a whopping 45.9% after altcoin ratios dumped into BTC, with altcoins outpacing BTC’s downtrend strongly in the short term. ETH dominance is now down to 17.8%.

Ethereum was hit hard by this dive and broke support and continued its journey downwards. The MFI is just crossing into oversold territory. It’s likely this could continue its downtrend a bit more if BTC continues its short-term volatility. The MACD has swung downwards firmly and its momentum waves look like they’re making a slight attempt to swing upward as the EMA lines continue downward. It’s possible we could see this continue downward, especially if volume does not settle a bit into this downtrend.