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Bitcoin and Ethereum Market Analysis – 03.06.2021

Bitcoin fell short of flipping the $38,000 level to support after attempting to start a relief rally, suggesting traders have decided to start buying at lower levels. BTC looks coiled into a tightening range as BTC/USD price action fluctuates between two converging trendlines, in search of its next big move.

Despite the continued struggle to breakout from the symmetric triangle, as one can see from the BTC/USD daily chart, few positive signs have shown that, bears have stopped selling and the worst of the downturn may be over. This brings to focus whether BTC has the potential to break-out pretty soon and in my view; it’s yet to be seen. I can only have bullish conviction if Bitcoin flips the 43k key level into support.

Looking at the BTC daily chart, a clear symmetrical triangle pattern has been esteblished as the bulls and the bears battle it out for dominance. From my years of doing crypto analysis, I always see the symmetrical triangle as a continuation pattern, even though, we’ve had lower lows consistently.

The downsloping moving averages and tightening range just below MA 200 may suggest, the bears are invalidating any bullish move, but I strongly believe that, the bulls will push and sustain the price above the resistance line of the triangle. If that happens, we may turn the 43k area resistance into support level.

Contrary to this assumption, the BTC/USDT pair may break below the triangle and the bearish momentum could pick up. If that cracks, the pair could retest the 20-22k area, and presents the opportunity to buy the dip.

Let’s keep it simple and watch the 43k area resistance.

Fig.1: The chart shows a clear symmetrical triangle pattern, difficult to predict.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

From the BTC weekly chart shows a downside market correction from the slip below the EMA 8. The little rebound suggests that, the buyers are buying at every dip.

Let’s hope that the rebounds will be sustained to stall further decline and resume the uptrend.

Let’s wait for any possible recapture of EMA 8 and watch 43k area for bull trend reversal.

Fig.2: The chart shows a downside market correction from the slip below the EMA 8. Source: bitcoin.live

Ethereum
Ethereum Looks a little stronger than BTC but we have the same basic tightening range. Same support/resistance levels to watch. Let’s see if the positive sign will give much ground to the bulls.

I would probably want to see the price above $3,000 to be confident, depending on what $BTC does. Anything around $2k is high conviction buy, but I don’t see it taking that direction.

I still give the bulls, a chance here.

Fig.3: Let’s watch the $3150 area resistance for any possible move. Source: bitcoin.live

Top Takeaways
$BTC 22k area support / 43k area resistance
$ETH $1750 area support / $3150 area resistance

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service