BTC price rebound from $64,000 signals pure consolidation, while ETH is struggling to survive above $3,000, hinting at an upcoming downtrend.
Key Results: BTC Technical Analysis
Bitcoin is encountering consistent supply within the $70K – $72K area, limiting the price from hitting new all-time highs.
The price broke the 50 EMA support but still remains above the current low of $64,000.
New supply is expected within the $68K – $70K area, which could start a new downtrend.
Bitcoin technical analysis – BTC/USD daily chart
If the current support at $64,000 is broken, BTC/USD could begin a new downtrend. Source: Distributed
Bitcoin surprised investors in the first few hours of U.S. trading on Friday. Both long-term and short-term holders of Bitcoin were left stunned as a result of the move that defrauded millions of participants in the cryptocurrency market. It’s interesting to note that the much-anticipated BTC halving occurred just 7 days ago.
Many traders panicked as the price of Bitcoin fell to $65,000 in the first few hours of the New York session. Total liquidations were about $881 million, with $784 million coming from long positions and $96 million from short positions, according to data from information center Coinglass.
Despite breaking the 50 EMA support, Bitcoin price is still hovering above the current low of $64K, suggesting a consolidation move within the $64-$73K range. However, the RSI is 43.88 (below 50), indicating bearish momentum.
Therefore, we are expecting more supply around the current resistance around the $70,000 level. If BTC fails to break this level, the price could move below the $64,000 support and start a new downtrend targeting $52,980.
See Related: Bitcoin and Ethereum Technical Analysis: BTC Sets 69K as Decision Zone for Upcoming Market Bias.
Key Results: ETH Technical Analysis
Ethereum began a downward trend as the price rejected the $4K level.
Investors fear a further correction after ETH/USD hit lower lows around $3,000.
A bearish break above the current support line could push the price back towards long-term support near $2,700.
Ethereum technical analysis – ETH/USD daily chart
If the price fails to surpass the $3.5K resistance, ETH/USD could retest the $2,700 support. Source: Distributed
The price of Ethereum fell slightly on Friday due to overall stagnation in the cryptocurrency market. There hasn’t been much movement in the ETH price over the past week, but the long-term outlook could be interesting now that Ethereum developers have approved the inclusion of EIP-3074 in the impending Pectra hard fork.
The price of Ethereum fell slightly to $3,448 on Friday, causing long-term traders to once again witness large liquidations. ETH liquidations in the last 24 hours totaled $26.9 million, of which $21 million came from liquidated long positions.
As previously expected, the ongoing horizontal price movement indicates that traders are becoming cautious amid growing skepticism about the SEC’s approval of a spot Ethereum ETF. The sideways trend will continue until a major event occurs, such as the Bitcoin halving.
Eventually, if the market reflects optimistic expectations from the halving, ETH could break above the current resistance area of $3.5K – $3.6K. But if not, there is a possibility that the sideways trend will continue and ETH may reach $3,405.
A negative trend is expected to emerge if the bears win and ETH breaks through the recent major support levels of $3,210 and $3,056. A break below this support could cause the price to retest $2,700.
The post Bitcoin and Ethereum Technical Analysis: BTC Price Rebounding from $64K Represents Pure Consolidation, ETH Struggling to Survive Above $3K, Hinting a Coming Downturn appeared first on The Distributed.
