Jump to content

Bitcoin & Ethereum: cracks in the rally


Recommended Posts

The upward pressure in Bitcoin and Ethereum has eased somewhat; so far the recent retreat appears to be a consolidation within the broader uptrend and what are the key levels to watch?

 

bg_crypto_bitcoin_ether_372745638.jpgSource: Bloomberg

 
 Manish Jaradi | IG Analyst, Singapore | Publication date: Monday 15 May 2023 

The fall in Bitcoin and Ethereum below the last month’s low suggests that cracks have emerged in the multi-week rally.

So far, cryptocurrencies have been holding above key support levels, but unless upward momentum to picks up the downside risks are unlikely to dissipate.

BTC/USD monthly chart

 

original-size.webpSource: TradingView

Bitcoin: Consolidation within the uptrend

The broader trend in BTC/USD remains bullish, notwithstanding the recent consolidation, as the colour-coded candlestick charts based on trending/momentum indicators show.

BTC/USD daily chart*

 

original-size.webpSource: TradingView

Importantly, Bitcoin has been holding above a crucial cushion around 25300-26000 (including the 89-day moving average and the February 2023 high).

BTC/USD daily chart

 

original-size.webpSource: TradingView

To be fair, the hold above the support recently is not a guarantee that the retreat is over. Unless the psychological 30000 is crossed decisively, the retest of the 25300-26000 area can’t be ruled out.

ETH/USD daily chart*

 

original-size.webpSource: TradingView

Ethereum: early-May high is tough bar to cross

Like Bitcoin, ETH/USD’s broader outlook has been bullish. However, ETH/USD’s close last week below horizontal trendline support at about 1780 is a sign that the upward pressure is fading. Still, it is holding above the February highs of 1710-1740 (including the 89-day moving average).

Any break below 1710-1740 could expose downside risks toward the 200-day moving average (now at about 1560). On the upside, for the upward pressure to fade, ETH/USD needs to break above the May 6 high of 2019.

ETH/USD daily chart

 

original-size.webpSource: TradingView

*Note: In the above colour-coded candlestick charts, blue candles represent a Bullish phase. Red candles represent a Bearish phase. Grey candles serve as Consolidation phases (within a Bullish or a Bearish phase), but sometimes they tend to form at the end of a trend. Note: Candle colors are not predictive – they merely state what the current trend is. Indeed, the candle color can change in the next bar. False patterns can occur around the 200-period moving average, or around a support/resistance and/or in sideways/choppy market. The author does not guarantee the accuracy of the information. Past performance is not indicative of future performance. Users of the information do so at their own risk.

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
  • image.png

  • Posts

    • Scrolling through Bitget's Twitter feed today, I stumbled upon something interesting: the upcoming listing of the BLAST token. A quick search revealed a project with some intriguing features, particularly its focus on native yields for ETH and stablecoins. This Layer 2 solution built on Ethereum seems to address some major pain points in the DeFi space.     By leveraging the Shanghai update, it offers auto-rebasing for ETH and T-Bill yields for stablecoins, all while aiming to reduce transaction fees significantly. Plus, it boasts a team with a solid track record and backing from well-respected investment firms. So, what do you guys think? Is BLAST the next big thing in DeFi, or is it just another layer 2 solution in a crowded market? With the token listing soon on Bitget, I'm curious to hear your thoughts on its potential impact on the crypto space.  
    • Ethereum's popularity is undeniable, but its congested network can be frustrating for users due to slow transaction speeds and high fees. Layer-2 solutions like Blast aim to tackle this by offering faster, cheaper transactions without compromising security. Blast takes things a step further by providing native yields for both ETH and stablecoins, simplifying the staking process for users. Similar solutions like Polygon and Arbitrum also offer scalability benefits, but Blast's unique yield generation and focus on bridging real-world assets to DeFi set it apart. This creates an environment where users can earn passive income while enjoying the advantages of a faster and more affordable network. Blast's native token is set to be listing on Bitget June 26th, this could further increase its visibility and adoption within the DeFi community The competition in the layer-2 space is fierce, each platform vying to become the go-to solution for smoother DeFi experiences. What are your thoughts on Blast and its approach? Share your experiences with other layer-2 solutions and let's discuss the future of scaling Ethereum.
    • Coffee Elliott Wave Analysis Function - Counter-Trend Mode - Correction Structure - Double Zigzag for blue Y Position - Wave C of (B) Direction - Wave C of (B) is still in progress Details - We recounted Coffee on all time frames. However, we expect the commodity to ascend after completing the zigzag wave (B) around the Fibonacci reversal zone of 212.9-203.9. Invalidation level is at 192.30. Coffee Elliott Wave Analysis Overview: In the long term, Coffee prices have been on a bullish run since October 2023. Despite several pullbacks, each previous top has been consistently breached. The last top was made in April 2024 at 245.5, followed by a decline to 192.3 within three weeks, extending to May 7th. Notable recoveries started from there. However, prices have yet to breach 245.5 to confirm the continuation of the bullish sequence from October 2023.   Daily Chart Analysis: Since January 2023, a double zigzag structure has been unfolding. Wave W (circled) finished on April 18th at 245.5, and the corresponding wave X (circled) was completed at 192.3 on May 7th, where wave Y (circled) began. Wave (A) of Y appears to have concluded with the impulse surge to the current peak in June 2024. Prices are now correcting into wave (B). If wave (B) completes above 192.3, buyers should gain the advantage to push prices higher, especially above the 245.5 top.   H4 Chart Analysis: On the H4 chart, wave (B) is subdividing into a zigzag structure, potentially completing around the 212.9-203.9 Fibonacci zone before turning upside in wave (C) above 245.5. Alternatively, prices might move sideways between the 245.5 and 192.3 extremes, suggesting a triangle structure for wave X (circled).   Summary: In conclusion, Coffee prices remain bullish with potential for further gains, contingent on the completion of the current corrective wave (B). Technical Analyst : Sanmi Adeagbo Source : Tradinglounge.com get trial here!  
×
×
  • Create New...
us