Bitcoin ups and downs aren’t for the faint of heart as it impacts prices across the crypto market; price action and ETH/BTC analysis
- Bitcoin Faces Stiff Resistance at $50K
- Ethereum Battles The $4K Level
- Ethereum/BTC Analysis
Bitcoin/USD – Where To Next?
BTC Daily Chart
BTC Weekly Chart
Last week when we covered Bitcoin, we mentioned that Bitcoin needed to break $50k to begin gaining momentum and reversing its downtrend. At the time of writing Bitcoin is priced at about $49k and while it has managed to tap the $50k level on lower timeframes, a daily close or even weekly close over the level is what we should wait for before believing that this downtrend has officially been broken. There is some daily support at $44,150k, but I think the level that holds more weight is the weekly support at $40.6K, which in my opinion is a MUST HOLD area.
Bitcoin Bull Scenario
Bitcoin reclaims support over $50k area and then we look at $53k as the next hurdle to overcome.
Bitcoin Bear Scenario
Bitcoin does not reclaim the $50k, and then we look for the $44k daily level to hold. If this level fails, we target the weekly MUST HOLD level of $40.6k
ETH Daily Chart
ETH Weekly Chart
In a similar fashion to Bitcoin and its battle with the $50k level, Ethereum is fighting its own battle with the $4k level which seems promising and more likely to be reclaimed. This level has not been officially reclaimed yet and before we jump to conclusions that this downtrend will break, we should just simply wait for a daily close or weekly close back through the level. If this level can manage to be reclaimed it would be very bullish for Ethereum.
Ethereum Bull Scenario
Ethereum reclaims the $4k level on the daily time frame and then pushes to reclaim $4.3k.
Ethereum Bear Scenario
If the $4k level cannot be reclaimed, we should target the next support level below of $3.6k level.
ETH/BTC Daily Chart
ETH/BTC Weekly Chart
While Ethereum/Bitcoin has managed to break out of the smaller daily range of 0.06 BTC – 0.08 BTC, it has not yet broken the larger time frame weekly level located at 0.085. On the weekly chart ETH/BTC has tapped the 0.85 resistance on four separate occasions. It is a well-known fact that every time price touches a level of resistance/support it causes those areas to get weaker and weaker until they eventually break through. Given that we have already had four weekly touches, it seems likely that this resistance will eventually be broken to the upside.
Ethereum/Bitcoin Bull Scenario
Ethereum breaks the 0.85 BTC level on the weekly time frame and then pushes to 0.10 BTC
Ethereum/Bitcoin Bear Scenario
Ethereum gets rejected at 0.85 BTC and we revisit the 0.08 BTC level or lower.