BTC, ETH Indecisive ahead of another big week
Bitcoin, Ethereum Talking Points
- BTC/USD maintains range-bound momentum despite a slight move lower on the day.
- Bitcoin vulnerability ahead of another big week of economic data.
- Ethereum (ETH/USD) edges above trendline resistance as $1,400 psychological resistance looms.
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Bitcoin, Ethereum Price Action
Bitcoin and Ethereum have remained within a narrow range as investors struggle to determine a distinct directional bias for the near-term move.
After falling to a low of $3,850 in March 2020, a large amount of fiscal stimulus and an increase in institutional interest supported the demand for major cryptocurrency leading to “crypto-mania”.
After a dizzying 1,690% rally (since 2020 low) that ended last November, failure to hold above $69,000 allowed sellers to drive Bitcoin back to previous support, resistance turned at the $32,950 low in January.
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But with the Russian invasion of Ukraine exacerbating already elevated price pressures, a shift in the inflation narrative and the long-term growth outlook sparked a cryptocurrency selloff that drove BTC/USD to a low of $17592.78 in June.
With rising global recession risks and further interest rate hikes largely priced in, monetary policy and a strong US dollar have played an important role in driving digital currency.
With the economic document still ahead of sentiment, this week’s agenda includes several data points that could provide further 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 key driver of the near-term move. If inflation remains high, expectations of another hawkish move by the Federal Reserve in December could cause prices to continue to fall.
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Bitcoin (BTC/USD) Technical Analysis
With recent price action consolidating between $18183 (monthly low) and $19666 (Dec 2017), further selling pressure and an increase in bearish momentum below $17592 (June low) could see prices fall back towards the next major support zone at the June high 2019 at $13880.
Bitcoin (BTC/USD) Daily Chart
Chart prepared by Tammy DaCosta using TradingView
Bitcoin key levels
| User support | Resistance |
|---|---|
| S1: 18183 (Current monthly low) | R1: 19666 (December 2017 high) |
| S2: 17792.1 (78.6% Fib 2020 – 2021 move) | R2: 20,000 (Psychic Level) |
| S3: 17592.78 (June low) | R3: 22718 (highest September) |
Ethereum Technical Analysis
As Ethereum follows in Bitcoin’s footsteps, a temporary rise above trendline resistance on the daily chart has turned into support for the second largest currency. As bulls try to regain the psychological level of $1,400, $1,200 remains crucial for the decline.
Daily chart for Ethereum (ETH/USD).
Chart prepared by Tammy DaCosta using TradingView
— Posted by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
