Welcome to "Eruptions" with DeFi Lava
Your weekly source of cryptocurrency and financial market news and analysis
Bitcoin has ranged between $18.8k and $22.6k with a week over week price change of +9.98%.
Price action on the weekly candles (shown below) continues to hug the 200 week moving average (green line), historically a level that Bitcoin visits when at or very close to finding the bottom of the crypto bear market.
We could see a double bottom reversal play out here as denoted by the blue marks. This is a classic price pattern when finding a bottom and it is the same pattern that played out in both previous crypto bear markets (2015 and 2018). We expect the next several months to be prime accumulation territory in anticipation for the next crypto bull market, which will most likely take place after the 2024 Bitcoin halving.
The S&P 500 (shown below) continues to sell off after rejecting from resistance within the descending broadening wedge pattern. This pattern has a bullish bias, but the index needs to break out of the pattern in order for the bullish target to come into play.
We are anticipating a further drop over the coming months to major support at approx. 3500, coinciding with the 200 week moving average (a level that Bitcoin has already reached).