We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Cryptocurrency Analysis: Bitcoin, Ethereum Prices Plunge into Support

To receive Michael’s analysis directly via email, please SIGN UP HERE

Talking Points

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

Join Michael on Friday for his bi-weekly Live Webinar on the Foundations of Technical Analysis- Register for Free Here!

Other Setups in Play:

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

STOP!

From December 19th, 2022, this website is no longer intended for residents of the United States.

Content on this site is not a solicitation to trade or open an account with any US-based brokerage or trading firm

By selecting the box below, you are confirming that you are not a resident of the United States.