Bitcoin (BTC/USD) Support Bounce, Ethereum (ETH/USD) Tests Resistance
Bitcoin, Ethereum Talking Points:
- Both Bitcoin and Ethereum have started to bounce, with the run in Ethereum appearing a bit more bullish as of now.
- Bitcoin found support around the 50% marker of the recent major move.
- Ethereum is re-testing a big area of resistance around the 2500 psychological level.
- The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.
Crypto markets have started to bounce after a continued pullback through last week’s trade. In Bitcoin, prices set a fresh monthly low before buyers showed up last night. The turn took place just a bit above a 50% level from the Jan 22 – April 14 major move, plotted around $46,847. Also notice where the RSI indicator on the Daily chart nearly touched oversold territory before this bounce began, which would’ve been the first such instance in over a year.
Bitcoin (BTC/USD) Daily Price Chart
From the shorter-term chart below, we can see where this recent bounce has entailed a short-term higher-high with a breach above Fibonacci resistance at $51,106. This can open the door for bullish trend strategies, and that prior spot of resistance becomes an operable area to look for that next iteration of higher-low support.
Bitcoin (BTC/USD) Two Hour Price Chart
Chart prepared by James Stanley; Bitcoin on Tradingview
Ethereum (ETH/USD) Re-Tests Big Resistance
I had looked into this last week as Ethereum was rushing up to fresh highs while testing a confluent spot of resistance on the chart. This resistance plotted around the 2500 level, and that psychological level was confluent with the 161.8% retracement of the February pull back in the cryptocurrency. And while this level didn’t immediately stop buyers in mid-April, as there was a temporary push above, that bullish test wasn’t for long as Ethereum aggressively pulled back, even testing below the 2k level before starting to recover.
Now with crypto markets showing a full head of steam on this weekly open, Ethereum has pushed right back to the confluent spot of resistance.
Ethereum (ETH/USD) Daily Price Chart
--- Written by James Stanley, Senior Strategist for DailyFX.com
Contact and follow James on Twitter: @JStanleyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.