Bitcoin held $10,000 and has now broken out of the falling wedge and is eyeing further upside from current levels. We pointed to the probability of this move in our last analysis. BTC/USD is primed for a brutal downtrend long term but it is still likely to see further upside short term. Many of the bears as well as the bulls are eyeing a break below $9,000. The bears expect it to keep falling further but the bulls are only hoping for such a decline so they can buy cheap Bitcoin (BTC). To such bulls, I would say be careful what you wish for because once the price breaks below the $9,000 mark, it is game over for the bulls.
The price has held above the 61.8% fib extension level for now. It closed yesterday in green and is eyeing further upside today. So, it is likely to keep seeing further upside from current levels until we hit the $10,500 and face a strong rejection. If the price ends up breaking past that, we can expect it to rally all the way to $10,900 under the extreme bullish case. If we take a look at ETH/USD, we can spot a symmetrical triangle on the 1H time frame as well. I’ve been discussing before how the market makers want to keep on testing how retail traders are going to react to certain patterns and formations. They need this input to plan how to trap traders when the price is close to breaking out of the larger symmetrical triangle.
If we take a look at the S&P 500, we can see that it has continued to rally higher. We can expect this rally to continue and for the S&P 500 to see new highs before the downtrend kicks in. It was 9/11 yesterday and big investors wanted to send a message that the markets are still strong and unmoved by anything and the price pumped up hard. The S&P 500 (SPX) could form a yearly high but the setup still remains very bearish and the longer the price stalls a move to the downside, the more brutal the downside move is going to be. It can keep trading sideways for now but eventually it is going to decline hard and when that happens it is going to inflict a lot of pain not only on the stock market but also on cryptocurrencies. The Dollar Currency Index (DXY) has broken above the ascending triangle and its next breakout is likely to coincide with some key political and economic events which spells trouble for Bitcoin (BTC) and other cryptocurrencies.