Jump to content

Bitcoin, Ethereum Finds Major Resistance – Levels to Consider

Recommended Posts


  • Bitcoin’s bullish move at risk around zone of resistance
  • Ether (ETH) highlights potential range, conditional upon upside rejection
  • Crypto Fear and Greed Index offers insight into recent crowd psychology
TrueDigital Expands Distribution of Its Bitcoin and Ether OTC Reference  Rates - CoinDesk


Bitcoin started the year in the same way it finished 2021, trending lower. Throughout January, BTC made lower lows and lower highs as a surging US dollar and hawkish Fed expectations weighed on the non-interest bearing asset. Additionally, the recent US – Russia tensions over Ukraine hasn’t helped risk assets, with bitcoin falling well within that category.

However, recent diplomatic efforts to calm the US-Russia tensions has provided a period of relief for risk assets as we have witnessed broad pullbacks in global equities and various JPY crosses (notably AUD/JPY, GBP/JPY). The situation, however, remains rather volatile and can change at any stage. Therefore, movements in BTC are expected to be news dependent and reactive in nature.

The recent uptick in bitcoin appears rather unconvincing, especially when comparing it to previous bullish moves that have produced greater momentum and volatility skewed to the upside. Looking at the chart, it becomes clear to see that BTC pivoted short of the major inflection point/zone around 29k/30k, meaning that a failure to break above the descending trendline - acting as support – opens the door to the 29k/30k retest. Additional resistance, should the breakout occur appears around the 41,500 to 42,500 zone. Therefore, the conditions around a sustained bullish move remain rather

Bitcoin (BTC) Daily Chart (Zoomed out to Highlight Major Zones)

Bitcoin, Ethereum Finds Major Resistance – Levels to Consider

Source: IG, prepared by Richard Snow



Ether, like bitcoin has witnessed a calm move higher from the January low. The daily chart showed a cluster of consolidation around the 76.4% Fib at 2466 and now looks to test the 2930 level of support at the 61.8% Fib level. Failure to trade above 2930 could see another move back towards 2466. The breakout scenario, on the other hand, brings in the 3385 level as nearest resistance.

Ether (ETH) Daily Chart

Bitcoin, Ethereum Finds Major Resistance – Levels to Consider

Source: IG, prepared by Richard Snow


The ups and downs of the psychology of trading is often amplified when trading volatile crypto markets and therefore, it is crucial to understand not only your personal strategy and emotions but also the emotions of the ‘crowd’.

Learn how to manage the emotions of trading

The Crypto Fear & Greed Index adopts a similar concept to CNN’s equity-related fear and greed index and tracks volatility, momentum, BTC’s performance vs alt coins and social media activity when determining the figure. This reading has been well within the fear segment of the reading which may present buying opportunities for value investors looking to secure lower dollar-cost-averaging within a wider portfolio of crypto assets. History shows us that periods of fear are followed by periods of greed however, the indicator provides no guidance on timing which is why the technical levels remain relevant.

Crypto Fear and Greed Index

Bitcoin, Ethereum Finds Major Resistance – Levels to Consider

Source: alternative.me, prepared by Richard Snow


Written by Richard Snow for DailyFX.com. 2nd Feb 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 29/11/23 22:18
  • Posts

    • I think his partnership with Bitget is actually a success considering considering he also won 2 ballon d'or  and Bitget has continuously grown I the process. I feel more 20 million registered users in 5 years since inception is unprecedented. 
    • That's a wise call and it's important to also confirm that the exchange of your chosen should be in compliance and perhaps licensed in your country. 
    • Investing in crypto could be challenging especially the Fear of Missing out Lambo. This mostly affect traders trading strategy and ideology. Predicting the right time to buy is always cumbersome and that is why many analyst advise DCA because it curtails FOMO and gives you a long-term crypto trading mentality. In crypto Dollar Cost Averaging involves investing the same amount of money in a target token at regular intervals over a certain period of time, regardless of price. This will help to control volatility on your portfolios and minimize FOMO For example when you decide to invest $100 on a token and invest $10 daily or weekly or monthly till you fulfilled you $100 target investment on the token irrespective of the price of the token. This strategy helps a crypto trader to build his portfolio over the long term thereby he/she is not bothered by short-term volatility in the broader markets. This strategy mostly favours low-budget traders in building a strong portfolio but the problem most normally encounter is exchange minimum trading amount. One analyst advised on how to mitigate this was to accumulate on exchange that has lower trading fees and later send to where you desire to hold. He also noted that some of this exchanges are good in listing good projects for you to be among the early birds. Do you think DCA is the best method to accumulate token and which exchange offers the lowest tradeable balance and trading fees?
  • Create New...