Key Findings: BTC Technical Analysis
- Bitcoin encounters consistent supply within the $70K – $72K zone, restricting the price from creating a new all-time high.
- The price broke the 50 EMA support but still holding above the current range low at $64K.
- Fresh supplies are expected inside the $68K – $70K zone which might initiate a fresh downtrend.
Bitcoin Technical Analysis – BTC/USD Daily Chart
Bitcoin surprised investors on Friday in the first few hours of US trading. As a result of a move that blindsided millions of participants in the cryptocurrency market, both long and short holders of Bitcoin were taken by surprise. The fact that it occurred just seven days before the much anticipated BTC halving is interesting.
Many traders were taken aback when the price of Bitcoin dropped back to as low as $65K during the first few hours of the New York session. Data from the information center Coinglass shows that there have been approximately $881 million in liquidations overall, with $784 million coming from long positions and $96 million from short positions.
Despite breaking the 50 EMA support Bitcoin price still floating above the current range low at $64K, suggesting a consolidation move within the $64 – $73K range. However, the RSI at 43.88 (below 50) signals a bearish momentum.
So, we’re expecting more supply around the current resistance at the $70K level. If the BTC fails to break this level, we might see the price moving below the $64K support to initiate a fresh downtrend targeting $52,980.
See Related: Bitcoin And Ethereum Technical Analysis: BTC Sets 69K As A Deciding Zone For The Upcoming Market Bias
Key Findings: ETH Technical Analysis
- Ethereum initiated a downtrend momentum since the price got rejected from the $4K level.
- Investors fear a further correction after ETH/USD created a lower low of around $3K.
- A bearish breakout of the current support might push the price back to the long-term support near $2,700.
Ethereum Technical Analysis – ETH/USD Daily Chart
The general stagnation in the cryptocurrency market on Friday caused a modest decline in the Ethereum price. Although there hasn’t been much movement in the price of ETH over the last week, its long-term prospects could be intriguing because Ethereum developers have authorized the inclusion of EIP-3074 in the impending Pectra hard fork.
Ethereum’s price dropped marginally to $3,448 on Friday, causing long traders to witness large liquidations once again. In the last 24 hours, ETH liquidations totaled $26.9 million, of which $21 million came from liquidated long positions.
As was previously anticipated, the ongoing horizontal price movement indicates that traders are being cautious in the wake of growing skepticism regarding the SEC’s approval of a spot Ethereum ETF. Up to significant occurrences like the Bitcoin halving, the sideways trend is probably going to persist.
If the market eventually reflects the optimistic expectations stoked by the halving, ETH may surpass the current resistance zone of $3.5K – $3.6K. If not, though, there’s a chance that the sideways trend will continue and ETH might reach $3,405.
Once bears win out and ETH breaches the recent major support levels of $3,210 and $3,056, a negative trend is expected to emerge. A break below this support zone might lead the price to retest $2,700.
