Crypto Industry News:
Bitcoin and Ethereum have recently enjoyed a return to positive sentiment, responding with increases in response to the improvement in the situation on the largest indices. The sentiment suddenly worsened after the quarterly report of Tesla, which in Q1 2022 sold 75% of its Bitcoins, the total value of which amounted to approximately USD 936 million. Until recently, the company was one of the largest Bitcoin owners. This is particularly painful information for the market because the crypto-oriented Elon Musk was until recently perceived as a revelation of the market.
Bitcoin reacted with a panic sell-off from levels above $ 24,000 to nearly $ 23,000, but demand is still not giving up. If, despite the information about the liquidation of Bitcoin reserves by Tesla, the king of cryptocurrencies maintains the bullish sentiment, and the price breaks again $ 24,000, it could be read as a sign of oversold and potentially create room for further increases.
Even if this happens, Tesla's Bitcoin sale shows that the long-term sentiment around risk assets has deteriorated sharply to institutions and stock market giants.
Technical Market Outlook:
The ETH/USD pair has paused the rally at the level of $1,631, just ahead of the key short-term technical resistance located at $1,710. The momentum is at the level of 70 points already, so the bulls are now fully controlling the market, however the market conditions are now extremely overbought. The intraday technical support is seen on the level of $1,319 and $1,281. The larger time frame trend remains down, however the recent breakout might be a beginning of a bigger bounce even towards the level of $1,750.
Weekly Pivot Points:
WR3 - $1,617
WR2 - $1,509
WR1 - $1,470
Weekly Pivot - $1,401
WS1 - $1,362
WS2 - $1,294
WS3 - $1,185
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames had broken below the key long term technical support seen at the level of $1,420 and bears continue to make new lower lows with no problem whatsoever. So far every bounce and attempt to rally is being used to sell Ethereum for a better price by the market participants, so the bearish pressure is still high. The next target for bears is located at the levels below $1,000, like the last swing low seen at $880. Please notice, the down trend is being continued for the 13th consecutive week now.
