Skip to Content
News & Analysis at your fingertips.

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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Bitcoin and Ethereum Forecast for the Week Ahead

Bitcoin and Ethereum Forecast for the Week Ahead

Brendan Fagan, Contributor


What's on this page

Bitcoin, Ethereum - Talking Points

  • Bitcoin slips back below $20,000 during broad risk rout
  • Ethereum continues to make higher lows
  • Fed rate hike continues to cloud the macro picture

Bitcoin and Ethereum Outlook: Bearish

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Brendan Fagan
Improve your trading with IG Client Sentiment Data
Get My Guide

Risk assets struggled mightily this week following the Federal Reserve’s interest rate hike, as surging US Treasury yields have dampened risk appetite. Concerns continue to mount over the rate at which the Fed is tightening, with many believing it will eventually cause a recession. These recession fears were compounded Friday by a surging US Dollar, as PMI data and weakness in the Sterling gave the Greenback a strong bid. With the macro environment remaining challenged, Bitcoin and other cryptos look likely to follow the footsteps of mainstream risk assets.

Despite the rout Friday across asset classes, Bitcoin and Ethereum both failed to make fresh weekly lows. This relative strength offers a reason to be optimistic, but it will be challenging for any bounce to sustain itself for very long. Sellers remain in control regardless of the asset as market participants essentially shed themselves of everything.

Bitcoin 1 Hour Chart


Chart created with TradingView

Bitcoin sits finely poised ahead of next week, having held above the post-FOMC weekly low around $18150. In FOMC volatility, Bitcoin was unable to reclaim the key psychological level at $20,000. Since Wednesday, price has made a lower high around $19500. Interesting to note is that price did not retest the weekly lows during Friday’s massive risk sell-off, which potentially opens the door to some modest weekend gains. Traders will likely watch the crypto markets over the weekend, as they offer a glimpse into risk appetite while major markets are closed. Given the state of affairs, BTCUSD may look to put in another test of the weekly support zone found near $18300.

Ethereum 1 Hour Chart


Chart created with TradingView

Ethereum has struggled following the completion of “the merge,” the long awaited network upgrade. Like Bitcoin, Ethereum has made a higher low in the wake of this week’s Federal Reserve meeting. In fact, ETH has carved out a series of higher lows. Despite this, a longer series of higher lows makes it difficult to constructively be bullish on Ethereum. We may be in for fireworks over the weekend of the triangle that has been brewing over the last week provides a break. The next leg for Ethereum may depend on how investors react when they come back to the market on Monday, as they prepare for next week’s blockbuster PCE print. With upside currently limited by a resistance zone around $1400, I favor a retest of last week’s lows around $1220.

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for trackingtrader sentiment, quarterlytrading forecasts, analytical and educationalwebinarsheld daily,trading guidesto help you improve trading performance, and one specifically for those who arenew to forex.

--- Written by Brendan Fagan

To contact Brendan, use the comments section below or@BrendanFaganFXon Twitter

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