The Crypto Forecast - Clear Skies or Stormy Seas Ahead?
Analyzing Bitcoin, Ethereum, BNB, Arbitum and AAVE
Cryptocurrencies have been on a rollercoaster ride lately, with prices swinging wildly amidst a chaotic macro environment. But for seasoned crypto investors, this is nothing new - volatility is part of the game.
In this newsletter, we'll analyze the price action and outlook for major cryptocurrencies including Bitcoin, Ethereum, BNB, Arbitrum, and Aave. There are supports being tested, resistances holding firm, and speculative pressures building across the market.
BTC ₿
The crypto market has lost its sparkle lately, with bitcoin futures trading volume drying up as the flagship cryptocurrency struggles to stay afloat. Bitcoin futures open interest, which measures the buzz around upcoming contracts, has dropped to a 5-month low of $11.3 billion, according to data from Glassnode. This suggests traders are closing out positions and reducing exposure to volatile crypto assets. We will continue to see sideways movement until high liquidity is developed alongside the support or resistance for a big move. The weekly chart is as follows:
The daily chart also continues in a range for now, while we see different altcoins pumping at different times.
ETH
ETH has followed our analysis exactly like the last time, it touched the resistance of 1732 and got rejected, further continuing the downtrend
DAILY SUPPORT: 1546-1574
DAILY RESISTANCE: 1691-1730In the weekly chart, the max downside that can happen is until 1136 which is personally my predicted bottom level. If the price comes there, it will form a triple bottom. This will take a lot of time though and a lot of bad news for ETH to reach there.
BNB
As Binance Coin (BNB) grapples with a turbulent market, its recent struggles have highlighted a decline in network activity, fueling a lack of buying pressure. The latest roadblock at the formidable $225 resistance level has compounded the altcoin’s long-term bearish bias, casting a shadow over its prospects in the crypto landscape. The daily chart has been following our analysis:
In the weekly chart, real troubles come when the strongest support of 172-187 is broken. If that happens, a lot of blood will be spilled in the market, and in BNB, direct support after that is at 44.
Weekly support: 172-187
Weekly resistance: 257-178
ARB
Arbitrum (ARB) holders are worried over the increased bearish pressure the token faces, leading to a tough battle to maintain its current support line. The rising pressure comes amid increased competition in network activity from one of Arbitrum’s (ARB) toughest competitors, Optimism (OP), after the latter signed a partnership with Worldcoin in July 2023.
In the weekly chart, we lost the support of 0.9911-1.01656 which becomes our resistance now and support has been calculated using Fib, that comes out to be 0.788-0.81.
The daily chart is expected to touch its resistance and get rejected before the continuation of the downtrend.
The daily resistance is 0.944
And the support is at 0.83
AAVE
The zone for Aave is getting narrower in the descending triangle forming in the weekly chart.
Weekly resistance: 71-77
Weekly support: 50-46In the daily chart, the resistance is 57.7-59.9 and the:
1st support: 50
2nd support: 45.93