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Bitcoin (BTC) and Ethereum (ETH) Sinking Into Support

Bitcoin (BTC) and Ethereum (ETH) Sinking Into Support

Nick Cawley, Strategist
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Bitcoin and Ethereum Charts and Analysis

  • Bitcoin sell-off could accelerate if zone support is broken
  • Ethereum/Bitcoin spread is trying to break trend resistance, again.

Bitcoin has faded below $40k as I write and is touching the bottom of an important area of support that needs to hold if BTC is to attempt to push higher. A move higher is looking increasingly unlikely with both the fundamental and technical backdrop now looking negative, although any easing of tension in Ukraine would help alleviate some downside pressure. Support at $39.6k has already been tested today and held and it needs to continue to stand firm otherwise a move to $37k is likely. As always, care should be taken over the weekend when the reduced volume can cause a sharp move in price.

Bitcoin Daily Price Chart

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Chart via TradingView

Ethereum has given back all of its gains this week and is looking set to test support at $2,659 again. Ethereum has marginally out-performed Bitcoin this week but the current wave of negative sentiment is hitting all cryptocurrencies alike. Resistance at $2,933 has been tested today and has held firm.

Ethereum Daily Price Chart

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Chart via TradingView

I highlighted last week the potential trend break by the Ethereum/Bitcoin spread but this failed to materialize. The trend has now been broken at a lower level and while a close and open above this trend line would normally suggest a move higher, it would be prudent for traders in this spread to see out price action over the weekend for further confirmation of the move.

Ethereum/Bitcoin Daily Price Chart

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Chart via TradingView

What is your view on Bitcoin and Ethereum – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

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