The USD is coming higher this week as US yields continue to rise based on hawkish FOMC policy.
We see stocks in risk-off mode at the same time which makes US currency very attractive, so those who are selling stocks will also look to go out of risky and volatile assets like cryptocurrencies. That been said, we think that under these circumstances, there is room for more potential weakness on major BTC and ETH coins as described lower.
Bitcoin, BTCUSD is coming even lower in the 4-hour chart, breaking even below December 2021 lows, ideally within wave (C) or (3) and there can be room for more weakness, at least towards 39k-37k area for wave ©. So, we remain bearish and we should be aware of more downside pressure while the price is below strong trendline connected from the highs and below 52200 invalidation level.
BTCUSD 4h Elliott Wave Analysis
Ethereum, ETHUSD is also coming down, below December 2021 lows as expected into wave C with room down to 2800 area or slightly lower; a leg that should be completed by a five-wave cycle. Just have in mind that we will need to see strong bounce and recovery back above 3600 level to confirm a completed wave C of an A-B-C correction, but for now we see current recovery as a sub wave (4).
ETHUSD 4h Elliott Wave Analysis