The crypto market has been through a lot to be where it currently is, with the top two cryptocurrencies taking massive hits throughout 2022.
Bitcoin has fallen to lows below $19,000 and has gotten back up several times. Ethereum rose to a high of about $1,700 before the historical merge that saw the blockchain move from a Proof Work mechanism to a Proof Of Stake mechanism.
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However, despite the bullish signs on Ethereum before the merge, the cryptocurrency flipped backward and hit a low of $1,300 less than two weeks after the merge.
As if the previous dips were not enough, on 13 September, the US federal reserve imposed a hike in their interest rates, adding salt to injury and crashing the price of bitcoin to $18,200. Ethereum itself was not exempted, as the cryptocurrency dipped 3% to lows of $1,250.
However, as it stands, the cryptocurrency market is showing signs of trying to recover.
Bitcoin is currently eyeing an uptrend to the $22,000 level, and Ethereum may just reclaim the $1,500 level before further price action in either direction.
Below is an analysis of these two cryptocurrencies, with predictions of where they may be headed.
Technical Analysis of Bitcoin
After hitting support around the $18,000 level, bitcoin may soon see an uptrend. The next target, should this happen, is the $22,000 zone.
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However, there is fairly strong resistance around the $20,500 zone that bitcoin is currently testing. This resistance had been acting as support over the last five months. However, after the price of bitcoin broke this level to the downside in June 2022, the $20,500 zone has become a resistance zone and is keeping the price of bitcoin down.
Interestingly, this level also coincides with the 50-day moving average (around $20,300).
This overlap between the resistance bitcoin faces and the 50-day moving average means that the price of Bitcoin is in for some serious struggle.
To see the price of Bitcoin move upward, the bulls need to apply significant momentum to push back against the bears. If the bulls fail to do this, Bitcoin may slip downwards again, and experience another drop.
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Technical Analysis of Ethereum
Ethereum has managed to hold itself over the $1200 zone in an interesting turn of events. The price action on Ethereum shows that the bearish trend on the cryptocurrency is indeed weakening.
However, the bulls shouldn’t rejoice just yet. A weakening downward trend doesn’t translate to a dead one.
The 4-hour chart supports Ethereum by an ascending trendline (blue line). This might also explain why Ethereum has managed to keep its head above the $1,200 zone.
However, according to data about the Funding Rates on Ethereum from CryptoQuant, its investors are still undecided, indicating that there is no strong bullish or bearish momentum.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)
