Reversal of Fortune: How Long Can the Rally Last | Market Update
Dollar Index (DXY): Daily
Past performance is not indicative of future returns
The Dollar Index (DXY) seems to have topped at an important resistance near 109. This price action could be a very positive development for crypto.
Total Crypto Market Cap: Weekly
Past performance is not indicative of future returns
In Total Crypto Marketcap (TOTAL), July 19 was a “Pi Cycle Bottom.” This signal could fuel more upside. This signal uses a combination of moving averages to arrive at bottom and top signals. There was a “Pi Cycle bottom” near the lows in both bitcoin and Ethereum.
Bitcoin: Daily
Past performance is not indicative of future returns
Bitcoin has a “Pi Cycle Bottom.” This signal could create a massive rally in bitcoin. Also, bitcoin dominance seems too low (see below). Bitcoin should be doing better than altcoins in a rising-rate environment. The rally in BTC could also last until the end of September.
Bitcoin Dominance: Daily
Past performance is not indicative of future returns
Bitcoin has a “Pi Cycle Bottom.” This signal could create a massive rally in bitcoin. Also, bitcoin dominance seems too low (see below). Bitcoin should be doing better than altcoins in a rising-rate environment. The rally in BTC could also last until the end of September.
Ethereum: Daily Chart
Past performance is not indicative of future returns.
The PI Cycle bottom in ETH came right near the low. If we had only known about this indicator earlier. $1,700 and $2,140 are potential upside targets. A revival of the NFT could be a bullish catalyst for ETH.
Bitcoin: Weekly Chart
Past performance is not indicative of future returns.
The weekly Bitcoin chart contains some very important signals. This chart has a confirmed DeMark “13” bottom and a “9” bottom. So, the recent rally has acted as confirmation and provides some confidence that the lows are in for now. If the rally lasts until the end of September, bitcoin could go to either $36,000 or $40,000. The next big DeMark resistance point is at $41,000.
Ethereum: Weekly Chart
Past performance is not indicative of future returns.
There are confirmed DeMark bottom signals on ETH’s weekly chart. There is major resistance at $1,706. This could create a pause in the ETH rally and allow bitcoin to catch up.
ETH: Visual Trends Indicator
Past performance is not indicative of future returns.
Looking at the visual trends indicator on ETH, the current green signal looks very similar to the one seen near this time last year. After the green signal last year, ETH was “up only” into September. So, if ETH clears $1,700, there could be a substantial upside.
Bottom Line:
We can see the crypto market rallying until the end of September. NFT may do well. Bitcoin may surprise on the upside. Coins of interest: BTC, ETH, SOL, DOT, APE, and AVAX. In particular, DOT and BTC could outperform going forward.
