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 05/10/22 12:13
  • Posts

    • This week’s Trading the Trend is a short-term trade which may last several hours to a few days. On the hourly chart go long the DAX 40 on a retracement lower at 12,445 with a stop loss at 12,345 and a take profit of 12,945, giving you a 5:1 profit ratio.        
    • BITCOIN (BTC) CHARTS AND ANALYSIS: Macro fundamentals continue to control Bitcoin’s price action. The odds of a breakout are shortening.     The last few weeks have been relatively quiet in the cryptocurrency market with prices drifting towards, and testing, zones of support. The ongoing narrative of higher rates for longer to combat inflation has kept a lid on any upside move with any short-term rally seen as an opportunity to hit the sell button. While the price of Bitcoin has drifted lower of late, support continues to hold firm, leaving traders looking at a narrowing range. Bitcoin Daily Price Chart – October 5, 2022 Chart via TradingView The weekly BTC/USD chart shows the recent stalemate and also highlights that the longer-term downtrend is closing in on the multi-month support level. This suggests that a breakout is on the cards and with the ATR reading at a multi-month low, suggesting that the market is relatively complacent, a break could be sharp. A convincing break of support around $17.66k could see $12.5k to $14k come into play, levels last seen over two years ago. A break above the downtrend would see the mid-August weekly high at $25.k the next upside target. Bitcoin Weekly Price Chart – October 5, 2022 Chart via TradingView What is your view on Bitcoin – bullish or bearish?   Oct 5, 2022 | DailyFX Nick Cawley, Strategist
    • The recent weakness in risk assets has been driven by the dollar strength, according to Serge Berger from TheSteadyTrader.com. Here he analyses the dollar’s performance and looks at positioning for a lower dollar as the fourth quarter motors on. He looks at EUR/USD, DAX, Nasdaq and how all this is working with US 10-year yields.          
  • Create New...