Bitcoin
Let’s start today’s analysis with the crypto market. Major cryptocurrency has been trading in a downward trend recently. Looking at the daily interval, Bitcoin launched a local upward correction but market bulls did not manage to break above the downward trendline, marked with red on the chart below. Even if the aforementioned line is broken, bulls need to deal with a nearby key resistance zone around ($39,600 - $40,500), which is marked with previous price reactions. According to classic technical analysis, as long as the price sits below the aforementioned resistance zone, the continuation of a downward move is the base case scenario. On the other hand, breaking above this resistance may herald a bigger upward move or even trend reversal.
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Bitcoin H4 interval. Source: xStation5
US100
Next, let’s look at the US tech index - Nasdaq-100 (US100). Looking at the H4 interval, one can see that the index rebounded following a strong sell-off. US100 broke above the local downward channel and also negated the 1:1 structure, which according to the Overbalance strategy may herald a resumption of an upward trend. The nearest resistance to watch lies at 15,535 pts, where one can find previous price reactions, as well as 61.8% Fibonacci retracement of the recent downward move started at the end of December 2021. On the other hand, the aforementioned upper limit of 1:1 structure at 14,875 pts should be considered as a key support in the short term.
US100 H4 interval. Source: xStation5
US30
Last but not least, let’s take a look at the Dow Jones Industrial Average Index (US30). Looking at the D1 interval, one can see that the recent sell off stopped at the key long-term support at 33,700 pts area. The green zone on the chart is marked with previous price reactions and the wide 1:1 structure. According to the Overblance strategy, bouncing off this level confirms that the main trend remains upward. The price has reached local resistance at 35,245 pts which coincides with the 100 period moving average. If current bullish sentiment prevails, one could expect the price to continue to rise. The next key resistance lies around the 36,400 pts area.
US30 D1 interval. Source: xStation5
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