Bitcoin, Ethereum Show Ambiguity After Volatile Start of the Week


Key Takeaways

Bitcoin and Ethereum retraced after having a positive start to the week.
To define its trend, BTC needs to close outside the $24,700-$23,460 range.
Meanwhile, Ethereum needs to hold above $1,850 to avoid a brutal correction. 

Share this article

Nearly $161 million in long and short positions have been liquidated across the cryptocurrency market in the past 12 hours. The spike in volatility has pushed Bitcoin and Ethereum towards crucial areas of support that will likely define the direction of the trend.

Bitcoin and Ethereum Consolidate

Bitcoin and Ethereum are stuck within narrow trading ranges, showing ambiguity until support or resistance breaks.

Bitcoin started Monday’s trading session on a positive note, surging nearly 4%. The early gains were short-lived as a spike in profit-taking pushed BTC from an intraday high of $25,200 to a low of $23,900. Despite the volatility spike, it is unclear where the pioneer cryptocurrency could be heading next.

From a technical perspective, Bitcoin appears to have developed an ascending triangle on its 12-hour chart. This consolidation pattern prevails that a sustained close outside the $24,700 to $23,460 price range could trigger a 23.5% move. This target derives from the height of the triangle’s Y-axis.

If BTC can print a 12-hour candlestick close above $24,700, an upswing to $30,500 can be expected. However, a downswing below $23,460 can trigger a sell-off to $19,000.

BTC/USD 12-hour chart. (Source: TradingView)

Ethereum also underwent a 5.6% retracement shortly after Monday’s trading session opened. The downswing was caused by a rejection from the upper trendline of a rising wedge developing on ETH’s 12-hour chart. The technical formation anticipates that if prices close below the lower trendline at $1,850, a 26.7% downswing to $1,350 becomes imminent.

ETH/USD 12-hour chart. (Source: TradingView)

It is worth noting that Ethereum would have to close decisively above $2,030 to invalidate the pessimistic outlook. Slicing through this resistance barrier could be seen as a sign of strength that encourages sidelined traders to re-open long positions, triggering a breakout toward $2,550.

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.



Source

Recommended For You

About the Author:

Leave a Reply

Your email address will not be published.

PHP Code Snippets Powered By : XYZScripts.com