Bitcoin and Ethereum Awaiting Confirmation of Market Direction

Key Takeaways

• Bitcoin reaching key support zone.
• Ethereum appears to want a rally but lacking conviction on the USD and BTC pair.

BTC/USD

Weekly

Daily

After 26 days, Bitcoin decided to make a move – many were expecting a bounce, but this proved to be premature.  On Wednesday, BTC/USD fell through its range support at the $7800 zone, finding a new local bottom at $7308. The 200-week moving average was acting as support for this range until the price fell through it, indicating buyer exhaustion.

From a macro perspective, this drop can still be considered a healthy pullback. The market is yet to decide its new intermediate bottom, though price won’t likely venture too far down – at least in the short-term – as it would first have to absorb substantial buy-side liquidity. Firstly, around the $7250 mark, there is support from the bullish trendline and the bull flag’s lower range, acting as strong demand zones. Secondly, the 50-week moving average confluence and previous range top at $6760 act as a second support area.

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However, plunging through these two liquidity pools would signal bearish control that the market is not yet ready to move upwards. So keep an eye on the weekly close: if the price pulls back above the 100 weeks moving average, then it could have just been a fake-out.

ETHEREUM

ETH/USD

Weekly

Daily

Since the intermediate-high at $366, ETH/USD has corrected 58%. Currently, the price is sitting in a falling wedge without any strong signs of life and relatively low volume compared to Q1 and Q2 of this year.

It appears ETH/USD has printed 3 swing-failure patterns dipping below the $155 support area, so keep an eye out if it reclaims the previous range bottom at $169, indicating bullish interest. Ideally, however, the price would have to break and consolidate above the descending wedge’s resistance line to signal bullish continuation.

ETH/BTC

Weekly

Daily

ETH/BTC has been on a steady downtrend since its all-time high in Q1 2018, although now it appears poised for a reversal. If the trendline support holds and the price breaks above the range resistance at 0.02222, the market could reach for the 0.02516 area.

However, if support doesn’t hold, bullish risk-averse traders should set their bids at the 0.01885 support area: the main demand zone.

Btc

Bitcoin

$27.971
price

0.76475%
price change

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In summary, look for confirmation in BTC and ETH price action before executing a trade!