Bitcoin, Ethereum at Crossroads: Can Both Cryptos Resume Uptrend This Week?
Investing.com | Jun 19, 2023 13:54
- Bitcoin broke below $25,300 after Fed's decision
- Meanwhile, Ethereum tested $1,750 resistance
- Can both cryptos break out of the bearish trend this week?
Bitcoin broke below $25,300 last week, but thanks to BlackRock's Bitcoin spot ETF application, it managed to reclaim the 26,500 support level.
Similarly, Ethereum attempted to surpass the $1,750 resistance level after maintaining support at $1,660. Nevertheless, both cryptocurrencies remain in a bearish trend.
h2 Bitcoin Trying to Regain Support/h2Bitcoin tried to recover and move back into the $26,500-$27,100 support range last week, which served as a key level in May.
The absence of buyers at the $26,500 level indicates that selling pressure in the cryptocurrency market remains strong.
Currently, it is crucial for Bitcoin to maintain support above $26,500. If it can consistently close above this level, the next target will be to break above $27,100.
Achieving this would signify a reclaiming of the upward trend and a break of the short-term downtrend that has persisted since April.
If Bitcoin manages to move above the $27,000 level, it will encounter intermediate resistance levels at $28,000 and $29,000. The short-term target remains in the range of $29,600 to $30,500.
However, there is a risk of Bitcoin's downward trend accelerating if it falls below $27,000. If selling pressure intensifies within the current support zone, BTC may decline toward the $24,000 level.
If hourly closes dip below $26,400, it could trigger bearish momentum. Conversely, hourly closes above the intermediate resistance at $26,600 could lead to a test of the falling trend line around the $27,100 area.
h2 Ethereum Moving in a Falling Channel/h2After breaking below the 2023 uptrend, Ethereum's downtrend accelerated. Following the rejection at the $1,900 level, Ethereum remained within the descending channel that started in April.
Eventually, it reached the lower boundary of the channel, falling to $1,640 last week.
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ETH has shown some upward momentum after finding support in the $1,640 region. However, it is currently facing resistance in the $1,720 to $1,740 range.
If it manages to reclaim the $1,750 level, it could potentially test the upper boundary of the falling channel around $1,820 this week. A successful breakout above this level could pave the way for a rapid move towards $1,950.
On the downside, if ETH fails to reclaim the $1,800 level, it may retreat toward the $1,500 level. Ethereum's next moves will be dependent on whether the midline of the falling channel is broken or not.
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