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Bitcoin and Ethereum Market Analysis – 27.05.2021

BTC price rebounding back to $40,855 is just one of the few signs meaning that the bears’ dominance may be over. The price of Bitcoin moved higher on May 26, reaching an intraday high of $40,855 for the first time in five days before turning lower owing to profit-taking sentiment.

Yes, we are expecting BTC/USD to hit $42,000 in the short term, but we have to exercise caution here on extended upside positions unless the spot market confirms a clear bullish breakout. I can only have bullish conviction if Bitcoin reclaims its 200 moving average (MA) at $42k which should serve as a strong floor for an upward trend. Be careful getting too bullish until Bitcoin turns both the 42k area and MA 200 back into support level.

Despite the continued struggle, few positive signs have shown that, bears have stopped selling and the worst of the downturn may have passed.

While many are watching the price behavior of Bitcoin to gauge whether the downtrend is over, Ether (ETH) has gradually been covering ground quickly. Ether’s 24-hour trade volume at $60 billion overtook Bitcoin’s at $50 billion. Ethereum rallied close to the $3,000 level but the low trading volume and overhead resistance saw the top altcoin fall below $2,800.

BTC daily chart shows that, the BTC/USDT rose to $40,855 today but the long wick on the candlestick suggests selling at higher levels. The downsloping MA 200 suggests advantage to the bears.

If the bulls could push and sustain the price above the MA 200, they will definitely gain the upper hand. If they manage to do that, the pair could rally to $48,000 in a short term.

On the contrary, if the price turns down from the current level, the bears will try to pull the price down to $34,060. This is an important support to watch because if it cracks, the BTC/USDT pair could retest the critical support at $30,000.

I remain skeptical until we can get back above and reclaim both MA 200 and that key 42k support level.

Pic.1: The critical key level to watch is the $42k resistance which will signal a bullish resurgence.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

BTC weekly chart shows, a little resurgence from the slip below the EMA 8. The rebound suggests that buyers are attempting to stall further decline to $34,060 support level.

If the rebound sustains, the bulls will again try to resume the uptrend but they are likely to face stiff resistance at $42k level. A breakout of this resistance zone will give the bulls, a whole lot of advantage.

On the other hand, the failure to sustain the rebound or build upon the bounce in the next few days will indicate that demand dries up at higher levels. That is likely to invigorate the bears who will then try to assert their dominance and break the $34,060 support to cause more harm.

In that regard, the critical indicator to watch is the weekly EMA 8 resistance which should hold Bitcoin’s price from further decline.

Pic.2: BTC shows a little resurgence from the slip below the EMA 8. Source: bitcoin.live

 

Ethereum
Ether’s resurgence has risen above the 38.2% Fib level at $2,738.74 today, indicating aggressive buying at lower levels. However, the bears are trying to stall the relief rally near the 20-day EMA ($2,936).

If buyers push the price above the 20-day EMA ($2,936), the pair could rally to the 61.8% Fib level at $3,362.72 level. Such a move will indicate the short-term downtrend is over.

Pic.3: Ether’s resurgence has risen above the 38.2% at $2,738.74 today. Source: bitcoin.live

 

Top Takeaways
$BTC 36.5k area support / 42k area resistance
$ETH $2600 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