In the world of investment, you might be familiar with bull & bear markets, however, in recent days creative minds have come up with a new term called the “kangaroo market.” A kangaroo market is when the price hops up and down over a period of time but the market remains indecisive for a clear break into either direction.
The prime factor in the money market that determines price trends right now is still the spread of the coronavirus, especially in the US markets. The prolonged rampant battle with the COVID-19 virus is starting to chip away at the strength of the US economy as the previous “V bottom” reversal in March might fail to be sustained. This causes an excessive amount of liquidity from the unlimited quantitative easing measure lingering in the market to move back and forth with the rhythm of the situation’s development.
In this kangaroo market where the trend is unclear, investors and traders alike have to learn to manage their funds carefully. Never to go all-in but divide your ammunition into smaller batches while trying to catch a hold of the market rhythm and trade between the swing highs and lows.
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The influx of large institutional investors might be the answer to why the crypto market is moving in sync with Wall Street. However, in the long term, the side effect of money printing will emerge, and only then will the digital scarcity feature of Bitcoin shine and outperform every other market.
Bitcoin Technical Analysis
In a short-term perspective, the price is still trending sideways and floating above the Fibonacci and Bollinger Band’s support at $8,800. The major resistance is unchanged at $10K but in order to confirm a clear uptrend, a higher high above $10,500 continues to be vital.
On the flip side, if Bitcoin fails to hold $8,800, the next major support according to Fibonacci’s retracement lies at $7,700. As the Bollinger Band continues to squeeze in, the trading strategy best fit for this kind of situation is still short-term trades in the range-bound of $8,800 to $10,000.
You may also want to read: Whale Spotting: Someone Swoop Up Large Amount of Bitcoin at $8,800 on Bitfinex
Ethereum Technical Analysis
Similar to Bitcoin, the short-term outlook of Ethereum is sideways. The important resistance is at $250 and the support at $212.
However, breaking below both the Fibonacci and Bollinger Band’s support will result in the retesting of previous support levels at $188.
The SCN30 Index has created a weekly high at 158.91 points before a swing-low to 145.54 points. The index seems to be losing momentum after reaching the all-time-high at 163 points on June 10 and followed by a series of lower-lows and lower-highs.
Disclaimer: This analysis is the view of the author’s alone, and does not in any way represent trading advice. all traders should trade at their own risk.
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