Bitcoin (BTC/USD), Ethereum (ETH/USD) Forecast: Neutral
Bitcoin (BTC/USD)
- BTC/USD determined to break psychological resistance
- Moving Average holds bears at bay
It’s been a challenging week for both major cryptocurrencies and their alt-coin counterparts after the three largest digital assets, Bitcoin (BTC), Ether (ETH) and Cardano (ADA) gave back a portion of their recent gains.
Despite the official adoption of Bitcoin as a medium of exchange by El Salvador, bulls failed to push price action above $53,000. The strong rally came to a rapid halt, causing prices to depreciate by approximately 12% before finding stability above the key psychological level of $45,000.
On the weekly chart below, price action is currently trading between the key fibonacci retracement levels of the June – September move while the moving average convergence/divergence (MACD) continues to threaten the zero line.
Bitcoin (BTC/USD) Weekly Chart
Chart prepared by Tammy Da Costa using TradingView
Meanwhile, on the daily time-frame, Bitcoin prices are supported by the 200-period moving average, with the short candles are likely indicative of indecision.
For now, critical support and resistance remains trapped in a confluent zone between the $43,478 and $52,939, the key fibonacci levels of the above-mentioned move.
Bitcoin (BTC/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
Meanwhile, Ether (ETH) has fallen below $4,000 but remains above both the 50 and 200-period moving average on both the daily and weekly time-frame, above the 61.8% retracement of the 2021 move at $3,046 which remains as critical support.
Should prices fall below the 50-period moving average or if the MACD crosses the zero-line from above, further downward pressure may allow sellers to drive price action back to the key psychological level of $3,200.
Ether (ETH/USD) Weekly Chart
Chart prepared by Tammy Da Costa using TradingView
Contrary to this, if prices rise above the 23.6% retracement of the 2020 – 2021 move, then a retest of $4,000 may be probable.
Ether (ETH/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
--- Written by Tammy Da Costa, Market Writer for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
