Overall a productive week in the world of crypto as DeFi protocols continue to survive repeated stress testing brought on by recent FTX events and a short-selling exploiter. Market sentiment has consolidated as Bitcoin and other Layer-1 blockchains move to the forefront while altcoins tag along.
🪂 The final snapshot for Quadency’s Airdrop will be taking place Saturday Nov 26th before the airdrop claim period starts on Dec 1, 2022.
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Bitcoin underwent mid-week volatility but we ended right where we started, at the $16.6 support level. We saw a noted jump in Bitcoin price after Wednesday’s FOMC meeting confirmed the slowing down of Fed rate increases.
After the early week purge of the 10th November low, we have continued to see bullish momentum push price higher, targeting premium of the current daily range.
Will we see a retest of the 50 EMA?As we end the current trading week, price is at equilibrium of the range as it pulls in orders from both buyers and sellers to generate the liquidity needed through accumulation to fuel the next move.
At this point, we could see two scenarios take place:
We would see the filling of fair-value gaps and a transfer of order-flow take place if this were to happen, to fuel deeper retracements to the upside potentially. If the bullish scenario is to take place we could see a retest of the 50 EMA be a visual catalyst to signal this continued bullish momentum.
On the HTFs, we may be seeing signals that BTC is nearing its bottom where a continued slow, gradual decline to the $14,000 level takes place.
Bearish liquidity purges may reemergeAs we can see, unlike previous bearish moves that have taken place since late 2021, when price is purging previous supporting lows we are not seeing huge price movements. Price is, in fact, failing to sustain itself below the purge level and going lower.
Instead, we are seeing BTC price instantly push back into the previous range and form a descending accumulation schematic nature. This usually signals that sellers are starting to become exhausted as well as buyers meeting all selling pressure.
This type of nature is similar to that of the May-June 2021 price action before the bullish run from $35,000-$70,000.
However, we must remember from a standpoint of market psychology, large market turns happen when the majority of participants are calling for the opposite directional move. So similar to that of the 2018 and early 2019 moves, we may see a sharp bearish liquidity purge testing prices not seen for a few years before the bullish trend emerges.
CRV and AAVE had a tumultuous week as both protocols appeared to be the new targets of the Mango Markets exploiter. Huobi’s HT was the week’s top performer, rising over 45% on the news of their upcoming expansion to Europe, Southeast Asia, and other regions.
On ETH/USD, we have seen price range within the bearish volatility leg formed in previous weeks and we now await commitment to a given direction.
Will our last bastion of support hold?Given that price has mitigated an extreme bullish order-block that is currently acting as key support; as well as having an open daily fair-value gap above; we could feasibly see a bullish move into the $1400 level and interact with the 50EMA.
At that point, we would look for signals of rejection of the 50EMA and other resistance levels or, if price is re-accumulating, for continued bullish momentum.
Alternatively, we would look for price to go to the absolute extreme of the current range and purge the engineered liquidity at below the psychological $1000 level and wait to see if price provides us signals that our last bastion of support is holding.
Bitcoin underwent mid-week volatility but we ended right where we started, at the $16.6 support level. We saw a noted jump in Bitcoin price after Wednesday’s FOMC meeting confirmed the slowing down of Fed rate increases.
After the early week purge of the 10th November low, we have continued to see bullish momentum push price higher, targeting premium of the current daily range.
Will we see a retest of the 50 EMA?As we end the current trading week, price is at equilibrium of the range as it pulls in orders from both buyers and sellers to generate the liquidity needed through accumulation to fuel the next move.
At this point, we could see two scenarios take place:
We would see the filling of fair-value gaps and a transfer of order-flow take place if this were to happen, to fuel deeper retracements to the upside potentially. If the bullish scenario is to take place we could see a retest of the 50 EMA be a visual catalyst to signal this continued bullish momentum.
On the HTFs, we may be seeing signals that BTC is nearing its bottom where a continued slow, gradual decline to the $14,000 level takes place.
Bearish liquidity purges may reemergeAs we can see, unlike previous bearish moves that have taken place since late 2021, when price is purging previous supporting lows we are not seeing huge price movements. Price is, in fact, failing to sustain itself below the purge level and going lower.
Instead, we are seeing BTC price instantly push back into the previous range and form a descending accumulation schematic nature. This usually signals that sellers are starting to become exhausted as well as buyers meeting all selling pressure.
This type of nature is similar to that of the May-June 2021 price action before the bullish run from $35,000-$70,000.
However, we must remember from a standpoint of market psychology, large market turns happen when the majority of participants are calling for the opposite directional move. So similar to that of the 2018 and early 2019 moves, we may see a sharp bearish liquidity purge testing prices not seen for a few years before the bullish trend emerges.
CRV and AAVE had a tumultuous week as both protocols appeared to be the new targets of the Mango Markets exploiter. Huobi’s HT was the week’s top performer, rising over 45% on the news of their upcoming expansion to Europe, Southeast Asia, and other regions.
On ETH/USD, we have seen price range within the bearish volatility leg formed in previous weeks and we now await commitment to a given direction.
Will our last bastion of support hold?Given that price has mitigated an extreme bullish order-block that is currently acting as key support; as well as having an open daily fair-value gap above; we could feasibly see a bullish move into the $1400 level and interact with the 50EMA.
At that point, we would look for signals of rejection of the 50EMA and other resistance levels or, if price is re-accumulating, for continued bullish momentum.
Alternatively, we would look for price to go to the absolute extreme of the current range and purge the engineered liquidity at below the psychological $1000 level and wait to see if price provides us signals that our last bastion of support is holding.
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Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.
Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.
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