Bitcoin & Ethereum Hold Ground Ahead of US CPI: BTC/USD & ETH/USD Price Setups
Bitcoin, BTC/USD, Ethereum, ETH/USD - Outlook:
- Bitcoin continues to flirt with the psychological 30,000 mark.
- ETH/USD is at a key uptrend line support.
- What is the outlook and what are the key levels to watch?
BITCOIN: Renewed base?
On the daily charts, despite the recent softness, BTC/USD has managed to hold quite strong support around 28500, roughly coinciding with the 89-day moving average and the lower edge of the Ichimoku cloud on the daily charts.
BTC/USD 240-Minutes Chart
Importantly, the fall in realized volatility hasn’t altered the higher-top-higher-bottom sequence established late last year, suggesting the interim trend remains up. Only a break below the June low of 24750 would trigger a reassessment of the overall bullish bias.
BTC/USD Weekly Chart
On the top side, as highlighted in the previous update, BTC/USD has been weighed by a key converged barrier at the April high of around 31000, coinciding with the 89-week moving average and the upper edge of the Ichimoku cloud on the weekly chart. See “Could the Fed Trigger a Deeper Retreat in Bitcoin & Ethereum? BTC/USD & ETH/USD Price Action,” published July 26. A break above the converged barrier would be a strong signal that the bearish pressure from 2021 is rising. Such a move could open the door toward 40000.
ETH/USD Daily Chart
ETHEREUM: At trendline support
After the sharp rise from the end of June, ETH/USD’s uptrend appears to have stalled. The recent minor retreat has brought ETH/USD toward strong converged support, including the 200-day moving average, and the 89-day moving average. Importantly, it holds above major support at the June low of 1620. The interim bias (from the end of 2022) remains up while this support is intact. On the upside, the May and July highs of 2020-2030 are crucial barriers.
--- Written by Manish Jaradi, Strategist for DailyFX.com
--- Contact and follow Jaradi on Twitter: @JaradiManish
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.