Connect with us

News

This Is What Technicals Hint about Bitcoin and Ethereum

mm

Published

on

VOC, Voice of Crypto, BTC Price Analysis

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.

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.

Advertisement

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.

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).

Crypto Chart showing a test of 50-day moving average (red line) around $20,300

Crypto Chart showing a test of 50-day moving average (red line) around $20,300 | Source: Tradingview

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.

Advertisement

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.

Chart showing ascending trendline on Ethereum (blue line)

Chart showing ascending trendline on Ethereum (blue line) | Source: Tradingview

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.

Chart snippets showing indecision between buyers and sellers (red arrow pointing to green hash)

Chart snippets showing indecision between buyers and sellers (red arrow pointing to green hash) | Source: CryptoQuant

 

 

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)

 

Advertisement

 

 

 

 

Advertisement

Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

Newsletter

Trending