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Bitcoin, Ether Outlook: BTC, ETH Indecisive Ahead of Another Big Week

Bitcoin, Ether Outlook: BTC, ETH Indecisive Ahead of Another Big Week

Tammy Da Costa, Analyst

Bitcoin, Ethereum Talking Points

  • BTC/USD maintains rangebound momentum despite a slight move lower on the day.
  • Bitcoin vulnerability remains ahead of another big week of economic data.
  • Ethereum (ETH/USD) edges above trendline resistance as $1400 psychological resistance looms.
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Bitcoin, Ethereum Price Action

Bitcoin and Ethereum have remained within the confines of a narrow range as investors struggle to determine a distinct directional bias for the short-term move.

After falling to a low of $3850 in March 2020, a large amount of fiscal stimulus and an increase in institutional interest supported demand for major cryptocurrency that fueled the ‘crypto craze’.

Following a staggering 1,690% (since the 2020 low) rally that came to an end in November last year, failure to hold above $69000 allowed sellers to drive Bitcoin back to prior support turned resistance at the January low of $32950.

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However, with the Russian invasion of Ukraine exacerbating already elevated price pressures, a shift in the inflation narrative and the longer-term growth outlook triggered the sell-off in cryptocurrency that drove BTC/USD to a low of $17592.78 in June.

With intensifying global recession risks and further rate hikes largely priced in, monetary policy and a strong US Dollar have played a vital role in driving digital currency.

As the economic docket remains at the forefront of sentiment, this week’s agenda hosts several data points that may provide additional insight into the health of the global economy. Although cryptocurrency has recently shown resilience against broader systemic risks, the release of US inflation data could be a major driver for the short-term move. If inflation remains elevated, expectations of another hawkish move by the Federal Reserve in December could see prices continuing their decline.

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Bitcoin (BTC/USD) Technical Analysis

With recent price action consolidating between $18183 (Monthly low) and $19666 (Dec 2017), additional selling pressure and an increase in bearish momentum below $17592 (June low) could see prices falling back towards the next big zone of support at the June 2019 high of $13880.

Bitcoin (BTC/USD) Daily Chart

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Chart prepared by Tammy Da Costa using TradingView

Bitcoin Key Levels

SupportResistance
S1: 18183 (Current monthly low)R1: 19666 (Dec 2017 high)
S2: 17792.1 (78.6% Fib 2020 – 2021 move)R2: 20000 (Psych level)
S3: 17592.78 (June low)R3: 22718 (September high)

Ethereum Technical Analysis

As Ethereum follows in Bitcoin’s footsteps, a temporary rise above trendline resistance on the daily chart has turned into support at around $1300. As bulls look to reclaim the psychological level of $1400, a break below $1200 could see additional bearish momentum driving prices back towards the July low of $1005.

Ethereum (ETH/USD) Daily Chart

Chart  Description automatically generated

Chart prepared by Tammy Da Costa using TradingView

--- Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

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

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