Massive Weekly Hammers: Crypto Defends the Line in the Sand

Bottoming out?

BTC posts its first meaningful up candle in weeks, defending $64k support.

21-day near $68k is the first test. Clear that and resistance thins out toward the 50-day around $80k. We are still trading in the lower half of the broader down channel.

Source: LSEG Workspace

 

Massive hammer

BTC weekly chart is printing a large hammer right at long-term trend support. The 200-week MA sits slightly below, and we nearly tested it earlier this month.

Source: LSEG Workspace

 

King of mean reversion

ETH has traded inside a huge range since mid 2021. Weekly hammer in the making at range lows. Keep it simple: buy range lows, fade/short range highs.

Source: LSEG Workspace

 

Double bottom?

ETH also attempting to carve out a potential double bottom, printing a strong up candle. As of writing, ETH is pushing above the 21-day. The 50-day sits considerably higher.

Source: LSEG Workspace

 

The tech connection

BTC vs NDX gap still wide... room to mean revert if risk turns.

Source: LSEG Workspace

 

BTC vols

BTC vol has come off recent highs. Not a “bargain,” but directional option structures make sense to us — especially with the 10am algo flows seemingly gone.

Source: Velodata