News for next week
Next week it’s full of news, so we should expect some volatility in the markets.
DXY – Weekly timeframe
The dollar is still going strong, and it’s close to the next resistance level. Right now we have a bullish bias on it due to higher highs and applying pressure to break this resistance and target the nearby FVG.
Crypto
Fear and greed index
I don’t trust the current index for fear and greed, because altcoins are currently in a very bad place, and it feels closer to a 30 or below fear in the crypto markets. The index is related to Bitcoin and that wasnt as affected as the altcoins were in the previous weeks.
USDT.D – Weekly timeframe
The USD dominance is bullish as well, meaning that money are leaving the crypto markets and people are going back into stable coins in fear of further correction.
We’ve just break the trendline and we expect it to go higher for next week.
BTC.D – Weekly timeframe
Bitcoin dominance is still in a wedge and we will not see in a bigger move in the markets until it breaks out of it.
TOTAL – Weekly
TOTAL couldn’t close over the last resistance level before ATH, and it’s now corrective. The second top was lower than previous one, implying that we will most likely retest the previous support level, and in case it will not hold, we will drop further.
BTCUSD – Weekly timeframe
Bitcoin is potentially on the 3rd wave, and we don’t have a confirmation that we will proceed with the 4th wave correction as long as the support level will hold. We may retest it next week.
BTCUSD – Daily timeframe
Currently there’s no bias on the daily timeframe. We are in a range for some time now, we broke the trendline and the price had all the reasons to drop but the correction was light, the price reached the liquidity imbalance created when it went up, and the sellers don’t seem to have enough power to push the price to the bottom of the range again.
The weekly timeframe looks bearish but the daily doesn’t look so bad, first we will need to retake the mid level of the range and break the structure.
Resistance: 66.3k, 69.6k (Twizzer top)
Support: 63k, 60.7k
BTC ETF (IBIT IShares) – Daily timeframe
The IBIT is close to the support level and may bounce from here, creating buying pressure on bitcoin.
Stock market
SPX – Weekly timeframe
SPX is still strong, currently in price discovery. It has reached a sell level and potentially going towards the next one at 5.6k.
NDX – Weekly timeframe
NASDAQ is also in price discovery, going towards the next resistance at 20.7k. There seem to be no weakness in the price, no divergence, the stock market is going strong right now.
XAUUSD – Weekly timeframe
Surprisingly, gold is also bullish at the same time as the stock market, however it couldn’t close over the resistance level at 2400$. We shall see next week if it will close above and break through. I would hope for a retest after the range break before it continues going higher.
EURUSD – Weekly timeframe
Since the dollar is going strong, we can expect EUR to suffer for now. It’s currently in a symmetrical triangle, and we should expect a major move in the following weeks. I expect a breakout towards the imbalance created with the move and then possibly another leg up.
Conclusion
The stock market is going strong and we should be able to see higher prices on the crypto market as well. Next week will probably be again bullish for stocks and bearish/neutral for crypto, seeing how the money is moving into USDT for now.
We are also getting closer to the next step of ETH ETF, which will probably bring a more bullish sentiment in the markets.
We also need to think about seasonality, as historically summer months are usually bearish due to lower trading volumes and market activity.