Bitcoin and Ethereum Market Analysis – 04.08.2021
Bitcoin peeked 24h highs later on Wednesday from its recent price slide, as fresh comments from the United States regulatory agency boosted the price action to $40k level. After 10 consecutive days of gain, Bitcoin bulls ran into a resistance at $42,397 in August 1st.
For Bitcoin to surrender a portion of its recent gains, means that, we’re not out of the woods yet. Our optimism right now, is that, BTC did not drop back as far as the MA 50.
I identify $42.5k as the pivotal level, BTC price needs to trade above it in order to avert a revisit of July’s swing low. This is the price level that will determine, if the market will enter another bullish phase or simply rejects to retest underlying support levels again.
Even though, BTC has hit few barriers, but the leading Altcoins indicator-Ethereum, appears positioned for continuation, as Ether has spurred more bullish activity than BTC recently.
Looking at the BTC daily chart we see show a of 4 red days, and now an outside day suggesting that the prior bear momentum has been slowed. BTC did not drop back as far as the MA 50, having found support at EMA 8 and closing up at MA 200 ($42.5k).
Let’s see if it gets another shot as $42.5k level in couple of days as flipping above this key resistance level will assure us of bullish bias. No matter the bullish view and the positive sentiment out there, we need the BTC to rebound off the MA 200 for any bullish validation.
Let’s watch the watch MA 200 as the most important level on the chart.
Pic.1: Shows a 4 red days, and now an outside day suggesting that the prior bear momentum has been slowed.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live
From the BTC weekly chart we see a bull break with bottom formed. This has given a clearer picture that the bulls may sustain the higher high here and peek above the overhead resistance at $42.5k for an upside.
The MA 200 still looms large over head with 42.5k area resistance, both need to be flipped for a full green light.
The hunt to establish firm support higher up the $42.5k channel, has given me confidence that the worst of the longer-term retracement is already over.
Pic.2: The chart shows a bull break with bottom formed with an eye on flipping over MA 200. Source: bitcoin.live
Ethereum
Ethereum is back to strong mode again, and with this lower high break it may be headed for top of channel around $2950. Our $2450 buy the dip level worked like a charm, and gave us two chances to go long since our last analysis.
Watch EMA 8 support, and on a further pull, $2450 again.
Pic.3: Shows a lower high break, that may be heading for top of channel around $2950. Source: bitcoin.live
Top Takeaways
$BTC MA 50 area support / 42.5k area resistance
$ETH EMA 8 area support / $2700 area resistance
