BTC ETH Technical Analysis
Between ESG (Economic Social Governance), Elon Musk prior tweets and China banning cryptocurrency miners, you had the perfect storm brewing. We’ve retested in the lows in BTC, ETH and the world hasn’t fallen apart. Certainly weakness remains but there are five things I’m watching.
Five Things I’m Watching
(i) BTC and ETH exhibit similar price behavior in that each made new lows below their respective May crash lows. Early dip buyers were punished.
(ii) The chart pattern might be seen as a double bottom in which volume declined across the pattern.
(iii) The zone of support was found where a lot of two way trade was conducted i.e. where prior value was established. This is fair value!!! Below the value area (rectangles) we say price is at a discount or that price will migrate lower to another level where value is established by two way trading. We don’t know which applies at this juncture.
(iv) There were signs of capitulatory volume into today’s lows and there weren’t many stops to run. If there were, price usually cascades much lower once support has been broken. While the day isn’t over, price is back within the trading range. This is a small win for the bulls.
(v) The result sets the stage for either a bullish reversal or at least a temporary halt to all the cryptocurrency selling pressure. As in any trading endeavor, price can only do three things:
(a) go up
(b) go down
(c) go sideways
In conclusion, BTC ETH technical analysis reveal that the trend as with most cryptocurrency remains down. Over the next few days we should either see a rejection of lower prices and price should move higher in a series of higher highs and higher lows or we’ll see acceptance of lower prices as witnessed by more sideways price action. So KISS.
Until next time. Stay safe out there.
Would you like to learn more about cryptocurrency markets? Join our cryptocurrency active trading and investing community. You’ll gain access to our cryptocurrency virtual trading room, a morning brief and a weekly market recap video.
Start here. Click to join FREE!