Bitcoin, BTC/USD, Ethereum, ETH/USD - Outlook:
- Bitcoin and Ethereum have fallen sharply in recent days.
- ETH/USD and BTC/USD are approaching major support levels.
- What is the outlook and what are the key levels to watch?
BITCOIN: Upward pressure has faded, but not ended
Bitcoin’s fall below key converged support around 27300-27800 has confirmed that the bullish pressure from last year has faded. The support includes the lower edge of the Ichimoku cloud on the daily charts and a rising channel since early 2023.
BTC/USD Daily Chart
Chart Created by Manish Jaradi Using TradingView
This follows a failed attempt to cross above the 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. For more discussion, see “Bitcoin & Ethereum Hold Ground Ahead of US CPI: BTC/USD & ETH/USD Price Setups,” published August 10.
BTC/USD Weekly Chart
Chart Created by Manish Jaradi Using TradingView
While the fall below 27300-27800 has disrupted the uptrend for now, it is not sufficient to suggest an end of the uptrend. Only a break below the June low of 24750 would trigger a reassessment of the overall bullish bias.Any break below 24750 would trigger a double top (the April and July highs), pointing to a deeper retracement toward the March low of 19550.
ETH/USD Weekly Chart
Chart Created by Manish Jaradi Using TradingView
ETHEREUM: Testing crucial support
Ethereum looks relatively weaker than Bitcoin. That’s because ETH/USD created a lower high (relative to its own peak in April) compared with BTC/USD which in July briefly surpassed its April high.
ETH/USD Daily Chart
Chart Created by Manish Jaradi Using TradingView
ETH/USD dropped below an important converged support on the 200-day moving average and a rising trendline since the end of 2022, confirming that the multi-week upward pressure has dissipated. Ethereum is now testing major support at the June low of 1620. Any break below would raise the odds that the uptrend from the end of last year had ended, pointing to a broad trading range of 1300-2000 subsequently for ETH/USD. The next support is the March low of 1370.
--- Written by Manish Jaradi, Strategist for DailyFX.com
--- Contact and follow Jaradi on Twitter: @JaradiManish
