Cryptocurrency Analysis: Bitcoin, Ethereum Prices Plunge into Support
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- Bitcoin looks to validate breakout, Ethereum prices consolidate into resistance
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Bitcoin (BTC/USD) 240min Chart
Technical Outlook: The price of Bitcoin plummeted today, breaking a near-term consolidation range that has held since the July 20th high. The decline is now approaching initial support at the confluence of former median-line resistance (blue) & the 38.2% retracement of the July advance at 2514. IF last week’s breakout is legit, price should hold above this region today.
A break lower targets the July open at 2465 and the Fibonacci confluence at 2384-2405- both these zones represent areas of interest for near-term exhaustion / long-entries. Resistance stands at 2639 with a breach above 2667-2700 needed to shift the broader focus back to the long-side in Bitcoin.
Ethereum (ETH/USD) 240min Chart
Technical Outlook: Ethereum is in a slightly different position here with prices continuing to hold within the confines of the larger descending pitchfork formation extending off the record highs registered in June. An ascending structure off the monthly lows highlights near-term confluence support here at 203. If Ethereum is indeed heading higher, price should hold above 187 (bullish invalidation). A breach above 236 is needed to shift the broader focus higher with such a scenario targeting subsequent resistance objectives into the upper parallel / 50% retracement at 270.
Learn more about Pitchfork formations in Michael’s three-part trading series
Relevant Data Releases
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- Written by Michael Boutros, Currency Strategist with DailyFX
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.