Whilst we are nearing levels indicative of buying opportunities in the past, the issue with sentiment measures for crypto markets is they have historically displayed a momentum effect, in that positive investor sentiment is indicative of positive price performance over the short-term and vice-versa. We can see this via the Crypto Fear & Greed Index. Turning now to investor sentiment, we are evidently nearing levels of extreme market fear. Ideally, I would like to see a spike in downside volume along with bullish divergences in such indicators like the RSI and OBV (On Balance Volume) confirming the bottom is in, particularly so for the latter. Though we currently reside at important levels that can easily be bought, not all the technical signs are there for a meaningful market bottom to be in place. This would either play out with Bitcoin outperforming to the upside which would be constructive for the overall market or Bitcoin outperformance to the downside, not an ideal outcome for altcoins and riskier digital assets.

Unless the 0.08 resistance level can be retaken, what we may have witnessed was a false break above this level in December and a reversal to the downside, pointing to further Bitcoin outperformance going forward. That being said, the recent price action of the ETH/BTC spread does not look favourable to me for Ethereum in the short term. To become more bullish on Ethereum in the short term, I would love to see the 200-day moving average retaken in short order similar to what occurred in late June and early July of last year. Turning now to Ethereum, the story is largely the same as Bitcoin, with $3k marking an excellent buy-the-dip opportunity but a break below opening the possibility of a fall down to as low as the $1,700 area. Should we indeed break meaningfully below $40k, $30k looks all but inevitable. Given its obvious importance from a technical perspective, this level provides a simple and attractive opportunity to structure a long trade with a clear stop below $40k. I have highlighted such points on the chart below for reference. As I mentioned earlier, we can see below how important this level has been for over 12 months, flipping between support and resistance on a number of occasions. Shorter-term, BTC finally lost its 200-day moving average after back-and-forth price action in recent weeks, ushering in a swift move down to $41k. This is certainly is something investors should keep an eye on nonetheless. Although we have seen such volume spikes to the downside in all meaningful market bottoms over recent years, it must be said of course that bottoms can form without such movements in volume. What also concerns me regarding the recent price action is we are yet to see a spike in downside volume that would usually accompany downside capitulation representative of a sustainable bottom. Such an outcome would not doubt provide an excellent long-term buying opportunity for those bullish digital assets. If we do enter a sustained bear market for crypto in the latter parts of 2022 I would not be surprised if this level is reached. By simply examining the weekly chart it looks as if we could easily see the price fall back to the $30k area. This moving average has provided key support since the mid-2021 lows and any meaningful close below would be the first since March of 2020. Convert the SpamBully toolbar into English, Spanish, French, Italian, German, Russian, and other popular languages.Beginning with the long-term technicals for BTC per the weekly chart, what is of concern is the recent price action has taken us meaningfully below the 50-week moving average. Send challenge emails to unfamiliar emailers. Report spammers to their hosts and the FTC. Allow or block email addresses, IP's, words / phrases you choose.Д«lock spam by country and language. Office 365, Outlook, Live Mail, Outlook Express Bayesian spam filter intelligently keeps your Inbox spam free. Customize SpamBully Screenshot Version: 4.4.0.54 Convert the toolbar into your own language. Office 365, Outlook, Live Mail, Outlook Express Bayesian spam filter.

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