Crypto Markets Flash Green Amid Bitcoin and Ethereum Death Crosses
The total cryptocurrency market capitalization stands at approximately $3.08 trillion, marking a 1% decline from Sunday but remaining above the $3 trillion threshold. The Fear & Greed Index has risen to 24 (Fear), up from a low of 10 in late November, indicating an easing of extreme risk aversion.
Bitcoin and Ethereum are both experiencing death crosses, where their 50-day exponential moving averages (EMA) have fallen below their 200-day EMAs, signaling bearish momentum. Historically, such crosses have occasionally marked local market bottoms.
Market participants are anticipating the Federal Reserve's decision on Wednesday, with Fed rate-cut odds around 90% according to FedWatch. This expectation could provide a boost to risk assets including cryptocurrencies.
Bitcoin is trading near $90,170, with an intraday high of $92,296 and support at $89,618. Over the past seven days, Bitcoin has gained approximately 6.4%. Technical indicators for Bitcoin include the EMA50 remaining below the EMA200, a bearish Ichimoku signal, an Average Directional Index (ADX) of 32.9 indicating a strong trend, a neutral Relative Strength Index (RSI) at 44.26, and a Squeeze Momentum Indicator showing bullish impulse within a compression zone. Key resistance levels for Bitcoin are $99,036 (immediate) and $105,000 (strong/200 EMA), while support is at $82,084 (immediate) and $68,384 (strong).
Ethereum is trading near $3,112, having opened around $3,060.6 with a high of $3,180 and a weekly gain of approximately 14%. Ethereum's ADX stands at 35.45, RSI at 49.67, and its Squeeze Momentum Indicator is bullish. However, its price remains below the Ichimoku cloud, accompanied by a bearish future cloud, suggesting caution ahead. Ethereum has immediate resistance at $3,174 and strong resistance at $3,596. Support levels are positioned at $2,753 (immediate) and $2,152 (strong).
The current outlook suggests a bear market bounce is likely until Bitcoin can reclaim its 200-day EMA near $105,000 and Ethereum breaks through its Ichimoku cloud. Market volatility is expected around the Federal Reserve's upcoming decision.
