Market Update: Bitcoin Ends Longest Losing Streak in History, Ethereum Shows Bullish Signs

 After more than two months of consecutive losses, Bitcoin has finally ended its longest weekly losing streak in history, putting an end to weeks of bearish sentiment in the crypto markets. Additionally, the stock market has also shown bullish signs, with the S&P 500, Dow, and NASDAQ all seeing gains. This positive news, coupled with a recent job report indicating a growth in the economy, has led investors to wonder if a market reversal is on the horizon. In this article, we will review the current state of the crypto economy, analyze the performance of top cryptocurrencies such as Bitcoin and Ethereum, and discuss the factors that could potentially drive a market reversal. If you're interested in staying updated with daily market updates, don't forget to drop a like and subscribe to our channel. Happy Monday folks, let's dive into today's update.

The Global Crypto Market Cap and Market Correlation: 

The global crypto market cap is currently sitting at 1.28 trillion dollars, up about 3.41% as the stock market shows a strong green opening. This positive correlation between the stock market and crypto markets can be observed in the performance of top cryptocurrencies. Taking a closer look at some of the top cryptocurrencies, we can see that most altcoins are experiencing gains, albeit modest ones. For example, Solana is up 6%, Cardano is up about 5-6%, and Avalanche is also up by a similar percentage. However, it's worth noting that we are not seeing the extreme gains of 20-30% that were common in previous bull markets. The drawdown from the recent market pullback is still affecting current market conditions, particularly for altcoin projects. Nevertheless, the performance of Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, continues to be a key indicator for the overall market sentiment.

Bitcoin's Performance and Technical Analysis: 

Bitcoin, which has been struggling to regain its bullish momentum, closed out its first green weekly candle since March, indicating a potential trend reversal. The weekly chart of Bitcoin still shows that it is close to oversold levels, with the RSI (Relative Strength Index) sitting at 38. On the daily chart, we can observe a similar pattern to last week's price action, with a daily long green candle followed by two small green candles. On the four-hour chart, the key support and resistance levels to watch are the 200 EMA (Exponential Moving Average), represented by the purple line, and the 30,700 price level, represented by the top orange line. Last week, we predicted that Bitcoin would drop back down to retest the 30,700 price level and would either claim it as support or resistance. However, Bitcoin fell below this level and struggled to break above it until late last night when it shot up over 4% in four hours, breaking above the 100 EMA, represented by the blue line, and approaching the critical resistance level of the 200 EMA. The four-hour RSI is showing slightly overbought levels, currently at 72%. While it's encouraging to see this type of market movement, it's important to note that we are still in a bearish market and may need a stronger catalyst for a sustained market reversal, similar to what was experienced in the previous bull market.

Ethereum's Performance and Short Squeeze: 

Ethereum, the second-largest cryptocurrency by market capitalization, has also shown bullish signs recently. On the four-hour chart, Ethereum has had several consecutive green candles, approaching a resistance level at the 100 EMA, represented by the blue line.