Bitcoin (BTC/USD) Technical Outlook is Bullish (For Now)
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BTC/USD Technical Outlook:
- Trading below 2017 peak, but held on a weekly basis
- A risk trends look to stabilize cryptos should see a recovery
- Resistance near 30k will likely be difficult to overcome
I’ve been extremely bearish on cryptocurrencies for some time now, and continue to be so looking out over the long-term. But this doesn’t mean they won’t rally from time to time as nothing trends in a straight line.
Last week, BTC/USD traded below one of the big downside targets – the 2017 high at 19666 – but recovered to close the week above the level. This is considered a successful hold of that high even if it did temporarily dip below.
Looking to where BTC could go, if risk trends can continue to firm up, and that looks like it will be the case, then we could see a snapback to around the 30k level. This was a major area of support for quite some time, and given there isn’t anything between here and there it looks possible we see it.
There is a weekly low at 25401 to watch as the first level, then that is followed by 28600 up to just over 30k. Should we rise towards that 30k area I will be watching for signs of old support becoming new resistance and a capper on the advance before another major leg lower.
Should we see last week’s low at 17592 get taken out without a quick recovery, then look for Bitcoin to keep sinking with the next support level arriving at 2019 high at 13880. Eventually I’m looking for BTC to fall to 3-5k, but not any time real soon. For now, there will be solid levels to use for trading at higher levels.
BTC/USD Daily Chart
ETH/USD is looking worse than BTC/USD and lacks meaningful levels in the area outside of a slope within a developing channel off the record high. The big level to watch on strength is at 1700. This was quite significant recently as it held up price just before it got halved over the last couple of weeks.
ETH/USD Daily Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.