Crypto market update

Last 24h:

🌐 Global crypto market cap: €966.71B (-0.10% last day)
📈 Total crypto market volume (24h): €21.82B (+25.32%)
💹 DeFi volume: €1.94B (8.89% of total crypto volume)
💳 Stablecoin volume: €20.83B (95.45% of total crypto volume)
🅱️ Bitcoin dominance: 48.39% (+0.01% today)

Bitcoin (BTC/EUR) - Head and Shoulders Pattern Signals Caution

The cryptocurrency market is currently a landscape of uncertainty, with traders grappling with price volatility and a lack of clear direction. Amid this turbulence, our focus turns to the BTC/EUR hourly chart, where a potential head and shoulders pattern is raising bearish flags.

The Head and Shoulders Pattern: A Bearish Signal

The head and shoulders pattern is a well-known technical formation that often serves as a harbinger of bearish sentiment. In the case of BTC/EUR, this pattern is manifesting on the hourly chart, prompting traders to exercise caution.

Exploring Breakdown Scenarios

For those closely monitoring BTC/EUR, it's crucial to consider potential breakdown scenarios. Of particular interest is whether the price will break below the neckline and the demand zone hovering around 23,082. This move could signify a bearish trend, with the psychological significance of the 23,000 level adding weight to this area. In the event of a breakdown, traders may set their sights on the subsequent two downside targets: 22,409 and 21,925.

The Invalidation Scenario

Nevertheless, as with any technical pattern, there's always the possibility of the head and shoulders formation being invalidated. If the price surges beyond the right shoulder of the pattern, it could cast doubt on the bearish outlook associated with this formation.

Ethereum (ETH/EUR) - Head and Shoulders Pattern and More Bearish Signals

Ethereum (ETH/EUR) traders find themselves navigating through a market that echoes Bitcoin's recent pattern. On Ethereum's hourly chart, a head and shoulders pattern is emerging, signaling a potential bearish trajectory.

The Unfolding Head and Shoulders Pattern

This pattern comprises three peaks, with the middle peak, or the "head," standing taller than the others. Typically, the emergence of this pattern indicates an impending bearish trend. However, additional concerns are present on Ethereum's chart.

Additional Concerns: The M Pattern and Resistive Trendline

In addition to the head and shoulders pattern, Ethereum's hourly chart hints at another bearish signal – the M pattern. Adding complexity to this picture is the presence of a resistive trendline at a higher timeframe, further fueling the bearish sentiment.

Exploring Breakdown Scenarios

Currently, all eyes are on whether the price will break below the neckline and the demand level positioned at 1,506.78. A breakdown at this juncture could signal an impending bearish phase. In the case of such a breakdown, traders may want to consider two subsequent support levels: 1,495.24 and 1,482.56 Euro.

EGLD (EGLD/EUR) - Bearish Trend and Potential Breakdown

EGLD/EUR is currently experiencing a bearish trend, marked by lower lows. The market recently retraced from a support level, and further bearish movement may be on the horizon if it breaks below this support.

Key Levels to Watch

To confirm this bearish scenario, we'll be closely observing whether EGLD/EUR breaks below the 22.57 level, followed by a retest. If this scenario unfolds, potential targets on the downside could be at 21.65 and 21.10 Euro.

Polkadot (DOT/EUR) - Inverse Cup and Handle Pattern Suggests Reversal

The inverse cup and handle pattern is a technical formation that typically signals a reversal in the prevailing trend. In the case of DOT/EUR, this pattern suggests a shift towards a bearish trend.

Key Levels to Watch

Two key levels are crucial for traders:

1. Demand Area at 3.83: This level serves as significant support. A breakdown below 3.83 Euro could indicate a bearish trend continuation.
2. Handle High: If the price manages to surpass the high point of the handle, it would invalidate the inverse cup and handle pattern.

Bearish Scenario

If DOT/EUR breaks down below the demand area at 3.83 Euro, it may open the door to further bearish movement, with potential targets at 3.57 and 3.39 Euro.

Algorand (ALGO/EUR) - Inverse Flag and Pole Pattern Points to Potential Bearish Trend

The inverse flag and pole pattern is a technical formation that often indicates a continuation of the current trend. In the context of ALGO/EUR, this pattern suggests the possibility of a bearish trend persisting.

Key Levels to Keep an Eye On

Traders should closely monitor two key levels:

1. Demand Area at 0.0814: This level serves as crucial support. A breakdown below this point could signal further bearish movement.
2. Threshold at 0.0945: If the price surpasses this threshold, it would invalidate the inverse flag and pole pattern.

Bearish Scenario

Should ALGO/EUR break down below the demand area at 0.0814, it may pave the way for additional bearish momentum, with potential support targets at 0.0773 and 0.0732 Euro.

In the ever-evolving world of cryptocurrency trading, staying vigilant and adaptable is key. Keep a watchful eye on these technical patterns and key levels as they unfold, and always consider the potential scenarios they may signify. Happy trading!

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This report issued by Tradesilvania is purely informative and is not intended to be used as a tool for making investment decisions in crypto-assets. Any person who chooses to use this report in the process of making investment decisions assumes all related risks. Tradesilvania SRL has no legal or other obligation towards the person in question that would derive from the publication of this report publicly.

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The information in this report was obtained from public sources and is considered relevant and reliable within the limits of publicly available data. However, the value of the digital assets referred to in this report fluctuates over time, and past performance does not indicate future growth.

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