The cryptocurrency market experienced significant growth last week, primarily driven by Bitcoin, which pleased investors. However, recent actions taken by the SEC in the past two days have resulted in significant declines in both Bitcoin and various altcoins. Now, let’s explore what we can expect for Bitcoin and Ethereum based on detailed chart analyses.
Bitcoin Chart Analysis
The daily chart for Bitcoin continues to show a narrowing wedge formation. During this period, a break in the support line led to selling pressure, but this was quickly overcome by a subsequent rise. The formation of the latest bar, with the EMA 9 (blue line) acting as resistance, may generate short-term selling pressure for Bitcoin.
The most crucial support level to monitor on the daily Bitcoin chart is the support line of the narrowing wedge formation at $60,797. If a daily bar closes below this level, it could introduce new selling pressure and pose a long-term threat to Bitcoin.
The most significant resistance level to observe on the daily Bitcoin chart is the EMA 21 (green line) average at $63,115. If a daily bar closes above this level, it could bring fresh momentum to Bitcoin and lead to substantial increases in its value.
Ethereum Chart Analysis
Over the past three weeks, the daily chart for Ethereum has displayed a triangle formation. The structure of this formation offers valuable insights for investors. However, during this period, the EMA 9 average has acted as resistance in the latest bar formations, potentially indicating a negative scenario for Ethereum in the short term.
The most crucial support level to monitor on the daily Ethereum chart is $2,959. If a daily bar closes below this level, it could result in long-term selling pressure on Ethereum. Additionally, if a bar closes below the EMA 200 average at $2,681, it could further intensify the selling pressure.
The most significant resistance level to watch on the daily Ethereum chart is the EMA 21 average at $3,105. If a daily bar closes above this level, it could provide Ethereum’s price with the necessary momentum to rise. Don’t miss the latest episode of our technical analysis series.
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Disclaimer: The information provided in this article is not intended as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks. It is essential to conduct thorough research before making any investment decisions.
