Bitcoin (BTC), Ethereum (ETH) – Down But Not Yet Out

[MongiIG]

BITCOIN AND ETHEREUM CHART AND ANALYSIS

• Last weekend’s Bitcoin gap is now filled.
• Resistance levels need to prove resilient.

Last weekend’s sharp sell-off in the cryptocurrency, during the low-liquidity Asian open, sent prices tumbling to multi-week lows before a partial rebound steadied prices. Then earlier this week, Bitcoin closed the gap on the daily chart, made between the CME close on Friday and the Asian open, around $51,750. With this gap filled, Bitcoin and the rest of the market eased lower but that move is currently lacking conviction and suggests a period of sideways price action with the potential to push slowly higher. There is a reasonable cluster of recent lows just above the 50% Fibonacci retracement level at $47k which needs to hold to enable BTC to re-test the important $53k level.

As always, weekend price action can be volatile and uncompromising so discipline is key.

BITCOIN (BTC/USD) DAILY PRICE CHART – DECEMBER 10, 2021

The daily Ethereum chart currently looks a little more supportive than the Bitcoin chart with re-tests of the $4k level and just under seeing buyers return to stabilize the market and push it higher. Ethereum has outperformed Bitcoin over the recent weeks, but this move is currently on hold. While recent ETH support has been held, a further re-test should not be counted out and the reaction to this next test may well steer price action in the short term.

ETHEREUM DAILY PRICE CHART - DECEMBER 10, 2021

What is your view on Bitcoin and Ethereum – bullish or bearish?

 

By Nick Cawley, Strategist, 13th December 2021. DailyFX

[MongiIG]

Bitcoin back below $50K after weekend gains; Ethereum flirts with $4K

Cryptocurrency

 

 

© Reuters.

By Samuel Indyk & David Pichodo, 13th December 2021.

Investing.com – The price of Bitcoin dropped back below $50,000 on Monday morning after a weekend of steady increases took the world’s largest cryptocurrency back above the key level.

Bitcoin had reached a low of around $46,800 early on Saturday before steadily increasing to around $50,800, a jump of around 8% in two days.

However, Bitcoin has edged back below the $50,000 level on Monday and trades around $48,900 at pixel time.

“After a brief rally over the weekend with Bitcoin temporarily breaking back above $50,000, the downtrend has come back into play with the resumption of softer price action and an extension of its losses since the peak in November,” interactive investor Head of Investment Victoria Scholar said in a research note. “Bitcoin has shed nearly 30% over this period with a clear descending trendline marked by lower lows and lower highs.”

Other cryptocurrencies have also shown signs of weakness with Ethereum, the second largest cryptocurrency by market cap, currently flirting with the $4,000 level.

“Ether is also under pressure shedding more than 2% with the next major support hurdle at $4,000,” Scholar added. “A break below could pave the way for further declines.”

Technical Picture

From a technical perspective, the 200-day moving average in Bitcoin stands around $46,800 and could act as major support.

A move below that level and the “flash crash” low from 4^th December around $42,600 could be the next major support level.

On the upside, a clean break above $50,000 will be needed before a move towards trendline resistance that sits around $52,000.

The 100-day moving average near $54,500 could then act as the next major resistance level.

[Broxer93]

Support and resistance levels do not take into account what are the supply/demand dynamics.

Officially last night, GMT, 90% of Bitcoin supply has now been mined. 

Exchanges are at a 3 years all time lows. And hash rate is at now at ATH, which makes Bitcoin harder than ever to mine. 

Short term price action is not particularly relevant. 

Market is completely irrational atm and most of the coins are sold at loss which highlights the panic the market is facing atm. 

 

 

[MongiIG]

38 minutes ago, Broxer93 said:

Support and resistance levels do not take into account what are the supply/demand dynamics.

Officially last night, GMT, 90% of Bitcoin supply has now been mined. 

Exchanges are at a 3 years all time lows. And hash rate is at now at ATH, which makes Bitcoin harder than ever to mine. 

Short term price action is not particularly relevant. 

Market is completely irrational atm and most of the coins are sold at loss which highlights the panic the market is facing atm. 

 

 

Ethereum, Bitcoin Price Analysis: ETH/BTC Bullish Continuation Setup.

ETH/BTC ANALYSIS:

• Bitcoin declines 30% from recent high compared to Ethereum at 18.5% measured at current levels
• ETH/BTC technical set up looking to take advantage of Ethers relative strength versus Bitcoin

 

CRYPTO ASSETS AND INFLATION HEADING INTO 2022

Crypto markets in general have seen some phenomenal price appreciation due to its large appeal as a hedge against inflation. While inflation persists, measure to combat it are being talked up more and more and major central banks, such as the Fed, have started to recognize the longer term effects of persistent inflation. Rates markets have stepped up their expectations of interest rate hikes into 2022 although, such expectations have proven to change - or self-correct – in response to central bank policy statements or evolving news surrounding the Omicron variant.

With much of the focus on controlling inflation, major crypto assets like Bitcoin and Ethereum have pulled back from recent highs but Ethereum looks to have weathered the storm better than its counter-part, Bitcoin. Ethereum has dropped 18.5% from the recent high compared to more than 30% decline in Bitcoin.

ETHEREUM HOLDING UP DURING LATEST DECLINE

While exhibiting a short term directional move lower, Ether remains within the longer term uptrend as the ascending trendline - acting as support – remains intact. As long as this remains to be the case Ether bulls may view a bounce off support as an opportunity to re-enter the longer term uptrend, either via ETH itself or via the ETH/BTC pairing.

With this being said, the potential for an extended lower move cannot be ruled out. The MACD has just moved below the zero line so pre-empting the move should be avoided.

Ethereum (ETC) Daily Chart

Chart prepared by Richard Snow, IG

BITCOIN DROPS NEARLY ONE-THIRD FROM RECENT HIGH

When compared to Ether, Bitcoin has seen a more drastic decline since the recent high and subsequently broke below the ascending trendline. The largest cryptocurrency by market cap trades just below the psychological level of 50,000 which remains the nearest level is resistance. Subsequent failed attempts at the 50,000 may be symptomatic of further future declines.

Bitcoin Daily Chart

Chart prepared by Richard Snow, IG

ETH/BTC TECHNICAL SETUP

A stronger Ether relative to Bitcoin establishes the potential for a bullish move in ETH/BTC as the pair tests the prior high (March 2021) at 0.08160. A bounce off this level could see the pair move back towards the all-time high which printed just a few days ago.

Ethereum/Bitcoin (ETH/BTC) Daily Chart

Chart prepared by Richard Snow, IG

 

Written by Richard Snow for DailyFX.com. 13th December 2021.

[Broxer93]

1 hour ago, MongiIG said:

Ethereum, Bitcoin Price Analysis: ETH/BTC Bullish Continuation Setup.

ETH/BTC ANALYSIS:

• Bitcoin declines 30% from recent high compared to Ethereum at 18.5% measured at current levels
• ETH/BTC technical set up looking to take advantage of Ethers relative strength versus Bitcoin

 

CRYPTO ASSETS AND INFLATION HEADING INTO 2022

Crypto markets in general have seen some phenomenal price appreciation due to its large appeal as a hedge against inflation. While inflation persists, measure to combat it are being talked up more and more and major central banks, such as the Fed, have started to recognize the longer term effects of persistent inflation. Rates markets have stepped up their expectations of interest rate hikes into 2022 although, such expectations have proven to change - or self-correct – in response to central bank policy statements or evolving news surrounding the Omicron variant.

With much of the focus on controlling inflation, major crypto assets like Bitcoin and Ethereum have pulled back from recent highs but Ethereum looks to have weathered the storm better than its counter-part, Bitcoin. Ethereum has dropped 18.5% from the recent high compared to more than 30% decline in Bitcoin.

ETHEREUM HOLDING UP DURING LATEST DECLINE

While exhibiting a short term directional move lower, Ether remains within the longer term uptrend as the ascending trendline - acting as support – remains intact. As long as this remains to be the case Ether bulls may view a bounce off support as an opportunity to re-enter the longer term uptrend, either via ETH itself or via the ETH/BTC pairing.

With this being said, the potential for an extended lower move cannot be ruled out. The MACD has just moved below the zero line so pre-empting the move should be avoided.

Ethereum (ETC) Daily Chart

Chart prepared by Richard Snow, IG

BITCOIN DROPS NEARLY ONE-THIRD FROM RECENT HIGH

When compared to Ether, Bitcoin has seen a more drastic decline since the recent high and subsequently broke below the ascending trendline. The largest cryptocurrency by market cap trades just below the psychological level of 50,000 which remains the nearest level is resistance. Subsequent failed attempts at the 50,000 may be symptomatic of further future declines.

Bitcoin Daily Chart

Chart prepared by Richard Snow, IG

ETH/BTC TECHNICAL SETUP

A stronger Ether relative to Bitcoin establishes the potential for a bullish move in ETH/BTC as the pair tests the prior high (March 2021) at 0.08160. A bounce off this level could see the pair move back towards the all-time high which printed just a few days ago.

Ethereum/Bitcoin (ETH/BTC) Daily Chart

Chart prepared by Richard Snow, IG

 

Written by Richard Snow for DailyFX.com. 13th December 2021.

It's not a great time to short Eth/Btc pair, but there will be very soon.
Eth has not delivered since inception. 

Investors surely have enough believe in it. That's because it is PoS and not PoW.
There is no fundamental knowledge from investors tho. 

In reality, Eth can easily be considered a synthetic CDO of crypto. 

There are so many bets on a bet. 

Eth has a marketing team. This says it all. Eth is run by humans. And as humans, we have to take into account imperfections. 

The gas fees inconsistency is the proof. 

https://ethereumprice.org/gas/

 

 

eth.jfif

[MongiIG]

17 minutes ago, Broxer93 said:

It's not a great time to short Eth/Btc pair, but there will be very soon.
Eth has not delivered since inception. 

Investors surely have enough believe in it. That's because it is PoS and not PoW.
There is no fundamental knowledge from investors tho. 

In reality, Eth can easily be considered a synthetic CDO of crypto. 

There are so many bets on a bet. 

Eth has a marketing team. This says it all. Eth is run by humans. And as humans, we have to take into account imperfections. 

The gas fees inconsistency is the proof. 

https://ethereumprice.org/gas/

 

 

eth.jfif 101.1 kB · 1 download

Hi @Broxer93

Thanks for sharing!

All the best - MongiIG