Bitcoin, Ethereum, Cryptocurrency, BTC / USD, ETH / USD – talking points:
- The long-term outlook for both Bitcoin and Ethereum remains skewed to the top.
- However, both cryptocurrencies may be at risk of having a short-term withdrawal as their respective rises appear to be higher.
As mentioned in previous reports, the provision of extraordinary fiscal and monetary stimulus measures in response to the new coronavirus pandemic has supported the prices of Bitcoin and Ethereum since the nadie of March 2020.
Although the long-term outlook for both cryptocurrencies remains excessively strong, their recent upper rises seem somewhat too much. This indicates that a short-term withdrawal is imminent. Here are the key technical levels to look at for BTC and ETH in the coming weeks.
Bitcoin Weekly Chart (BTC) – 300% Fibonacci Capping Topside Potential
Bitcoin Weekly Chart Made Using Tradingview
Bitcoin has risen more than 83% over the past 3 weeks after rising above the psychologically-imposing $ 30,000 mark, with prices now having key resistance at the 300% Fibonacci expansion level (35352).
However, as the RSI approaches its highest weekly overbought readings since 2013, and prices are significantly higher than the exponential moving average of 8 weeks (23110), the correction of the short-term correction seems likely.
Failure to gain a solid foothold of more than $ 35,000 will likely cause sellers to return the price to psychological support at $ 30,000, with an interruption under way to test former resistance-twisting support at the implied symmetrical triangle motion (28108).
Alternatively, a convincing pressure above the Fibonacci of 300% could land the $ 40,000 mark in the cross.
Bitcoin (BTC) Daily Chart – Tips for Shooting Stars on Short-Term Retirement
Bitcoin daily chart created using Tradingview
Introduction of the daily timeframe also indicates the possibility of a short-term downturn for the popular cryptocurrency, as a bearish Shooting Star candlestick begins to take shape only shy away from the 200% Fibonacci expansion (35114).
A turnaround in the direction of psychological support at $ 30,000 looks at the charts if buyers can not hamper Fibonacci resistance. If you eliminate it, it will probably be able to support Bitcoin again at the December 27 high (28244).
On the other hand, a daily close of more than $ 35,000 could push Fibonacci prices up 227.2% (36913).
Ethereum (ETH) Weekly Card – $ 1000 Key Resistance
Weekly Ethereum Chart Created Using Tradingview
Ethereum has also stormed higher over the past three weeks, rising more than 65% to test key resistance at the peak of February 2018 (979).
However, as the RSI has risen to its most overbought readings since 2018, the second most heavily traded cryptocurrency may run the risk of having a reversal in the short term.
Failure to clear the $ 1000 mark could create a downside to the May 2018 high (838), with a break that puts the $ 700 level in focus.
Conversely, breaking psychological resistance could neutralize short-term selling pressure and create a price rate to challenge the record high (1424) in January 2018.
Ethereum (ETH) daily chart – 200% Fibonacci comes into focus
Ethereum daily chart created using Tradingview
However, the daily time frame points to further rise for Ethereum in the short term as buyers let prices rise through a spate of key resistance levels at 161.8% Fibonacci (956.27) and February 2018 (979).
That being said, the recent pressure on the upside seems to be too much too much as the distance price moves from the 8-day EMA (781.45) and the excessively overbought readings on the RSI.
Therefore, an aggressive pullback to the peak of May 2018 (838) could be in sight if the price does not close more than psychological resistance at $ 1000 daily.
Clearance likely to pose a challenge to former resistance-twisting support at the December high (757.67).
On the contrary, a daily close of more than $ 1000 could open the door for buyers to examine the 200% Fibonacci expansion level (1108.76).
– Written by Daniel Moss, analyst at DailyFX
Follow me on Twitter @DanielGMoss
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