[ad_1]
Key Takeaways
Bitcoin is in a no-trade zone between $28,870 and $30,750.
Likewise, Ethereum is stuck between $1,960 and $2,145.
Only a break above support or below resistance can resolve the ambiguity.
Share this article
Bitcoin and Ethereum continue to consolidate while searching for new catalysts that will help them gain the momentum needed to break out.
Crypto Traders Are 50/50
Bitcoin and Ethereum remain stagnant, trading within a tight price range, as traders cannot decide on whether prices will go up or down.
Data from Coinglass shows that market participants are divided on what the future holds for Bitcoin and Ethereum. Roughly 50% of all accounts with open BTC positions across all major crypto derivatives exchanges are net-long, while the other 50% are net-short. Similar trading history can be seen around ETH.
Source: Coinglass
The lack of certainty among market participants about the future price action is wearing down Bitcoin and Ethereum.
The top two cryptocurrencies by market cap continue to consolidate within no-trade zones, waiting for a spike in volatility. The longer BTC and ETH get squeezed, however, the more prominent the price movement that should follow. But the problem is determining the direction in which the trend will resolve.
Bitcoin, Ethereum Await Catalysts
For instance, Bitcoin has defined a clear support floor at $28,870 and a stiff resistance barrier at $30,750. A decisive four-hour candlestick close outside of this range will determine where BTC will go next. The formation of a symmetrical triangle suggests that upon the break of the stagnation period, prices will move by 17.70%.
Under such circumstances, a breach of the $30,750 resistance level might result in an upswing to $35,300, while dipping below the $28,870 could see Bitcoin take a nosedive to $24,400.
Source: TradingView
Ethereum is also showing ambiguity as long as it continues to trade between $1,960 and $2,145. Only a sustained four-hour close below support or above resistance can help determine where ETH will go next. It is reasonable to remain on the sidelines waiting for the trend to resolve until that happens.
The reason to remain patient with Ethereum is that it appears to be forming an ascending triangle on the four-hour chart. The height pattern’s y-axis suggests that a break of the hypotenuse at $1,960 or the x-axis at $2,145 could result in a 16.57% price movement.
Source: TradingView
Bitcoin and Ethereum have yet to find new catalysts to help them gain the trading volume needed to break out. Meanwhile, other coins like Fantom have managed to post significant gains after finding the “it” factor needed in form of a new proposal from Andre Cronje.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
[ad_2]
Source
