Bitcoin and Ethereum Market Analysis – 24.11.2021
Bitcoin’s price tested mid channel support at $56k and seems to be struggling below the $60K mark. As of now, BTC has lost 7% over the last week, trading in the range of $55-58K, failing to reclaim the 50-day moving average line.
The trading volume has remained constant during this correction, and bears might still have some runway in them. Therefore, it’s important to be cautious in the near term. The RSI on the daily time frame continues to decline (but not yet reached oversold conditions), although there are signs of bullish divergence on the 4-hour chart as the RSI is making higher lows. To confirm it, BTC needs to hold above $53K and produce a meaningful push to the upside.
Let’s hope there would be a strong buying at lower levels to upscale the momentum for bullish continuation.
Ethereum is also struggling to find bullish momentum but clearly (from ETH/BTC chart) outperforming the BTC in the sense of that, the price doesn’t pull back much. It’s certain that the implementation of the Ethereum network EIP-1559 and the burning of $4.2 billion worth of coins will push the price higher.
The BTC daily chart shows that, the bulls are attempting to avoid further drop near $55k as the price trades below key level 60k area. It seems the bears are not relenting as the moving averages have completed a bearish crossover and the RSI making higher lows.
I don’t see the bears flipping the $58k price level into resistance if the price turns up from the current level and breaks above the downtrend line.
If bulls are going to resume the trend we will know with a break of $60k, or $61k by clearing the overhead hurdles at the key levels.
Let’s prepare our mind for any possible scenario that could play out here but I still believe that, the bulls have an edge.
Pic.1: The bulls are attempting to avoid further drop near $55k as the price trades below key level 60k area
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView
BTC weekly chartshows a bullish outlook regardless of the price plunge. A close above the $58,500 zone is needed for a fresh increase. In the stated case, the price is likely to rise steadily towards the $60,000 level.
The price action is still holding the MA 50 and closed at the EMA 8, signaling that, those two are the key indicators to watch out for any upside.
As it is, it remains important for the price to push back above the key level of $60k to validate the uptrend. A breakout of this key level will reposition the bulls for the next leg of the up-move.
Ethereum looks set to continue its outperforming of BTC, and currently in a narrowing range after that last drop down. The $4200 area is a buy for sure, and a deeper breakdown, we can buy MA 200, or back above $4450 for some momentum.
A move above $4,450 high would also break the series of lower highs and see Ethereum back into the zone of prior resistance that turned into support between $4,580 and $4,650.
Watch the key horizontal $4200 area, that’s our buy the dip until proven otherwise.
$BTC $55.5k area support / EMA 8 area resistance
$ETH $4200 support / $4450 area resistance