Big drop on Bitcoin (BTC) and Ether (ETH). Will it continue?

Bitcoin (BTC) Technical Analysis

Let’s start our market point with an analysis of the price of Bitcoin (BTC) on the monthly view. The latter makes it possible to understand the macro situation at stake for this asset.

Within 15 days, the latter should close and it is easy to identify the level to hold. A close below $35,000 would signal a much larger retracement phase for the price.

In effect, the next macro price zones lie between $20,000 – $9,000. These areas correspond to the level of the former ATH on the one hand, and the impulse of the bullish movement on the other hand.

Figure 1: Analysis of Bitcoin (BTC) in 1M

Now let’s zoom in on the weekly view to clarify this. What is very clear now is the formation of a range between $31,200 – $61,800. In this zone, the price moves erratically between the two limits. Let’s take this range in its context, namely, after a significant bullish phase.

It is still too early to say whether we are in a phase of reaccumulation or a phase of distribution, the two outcomes being different.

Figure 2: Bitcoin (BTC) analysis in 1W

This range is specified on the daily view, and we can note two things:

  • The price lost its last low at $37,250, confirming its downtrend,
  • For the price to resume its upward path, he will have to cross $47,000.

Currently, the price remains very bearish implying that any rise this week will be a retracement of the bearish movement.

Figure 3: Bitcoin (BTC) analysis in 3D

The 4h view will give us the same type of information with local levels that would signal the potential retracement phase.

A recovery of $31,600, would allow us to retrace towards the $37,300 – $40,000 level.

Figure 4: analysis of Bitcoin (BTC) in 4 hours

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Ether (ETH) Technical Analysis

Our next analysis will focus on the price of Ether (ETH). As with Bitcoin, the price on the monthly view follows the same structure.

The latest low at $2,250 shows us the last zone that allows the price to maintain its micro bullish structure. In the event of a close below this level, a more important retracement scenario will occur. The first buy zone is around $1,110 while the last one is at $225.

Figure 5: analysis of Ether (ETH) in 1M

On the weekly view, the price also forms a range that takes place between $2,000 and $4,000. A close below $2,000 will be a first bearish signal that will trigger the bigger fall scenario.

In the meantime, this technical point should make it possible to see rebounds even in the short term. We will have to remain attentive to the closing and to the information that the daily unit can give us.

Figure 6: analysis of Ether (ETH) in 1W

Again, this unit of time allows us to identify 2 important areas:

  • The price lost its last low at $2,490, confirming its bearish continuation
  • For the price to touch the upper limit of the range, the latter will have to close above $3,500.

Figure 7: Ether (ETH) analysis in 3D

In the event of a rebound, the price will be on a retracement phase. On the 4h view, we can note the $2,400 zone which will allow us to retrace to $2,700 – $2,900 initially. As long as this zone is not crossed, the price may continue to fall towards new supports.

Figure 8: analysis of Ether (ETH) in 4 hours

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Conclusion

The courses of Bitcoin (BTC) and of Ether (ETH) are currently on their lower limits and last zone of defense. In the event of a downward move, the deeper retracement scenario takes place, with minimum targets at $20,000 for Bitcoin and $1,100 for Ether.

The price could rebound in the week in the current zone, but we will not be able to consider this as a structural rise. We must first break past the latest highs in order to change the current bearish structure. Any rebound should therefore be considered as a simple retracement, and quick profit taking is therefore preferred.

Limit exposure while waiting for return of trend movements then seems obligatory for less experienced actors.

It was cryptOdin to serve you.

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Chart sources: TradingView

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