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Bitcoin and Ethereum Market Analysis – 29.08.2021

Bitcoin remains pressured under $50,000 in the week and momentum seems to be fading. BTC is trading to lows of $47,801 following its rejection near the key level-$49.5k on Aug. 29. Yes, we’re in a bullish market but we have to be very cautious here, as the bearish divergence of the on-bound volume(OBV) and the sloping RSI of BTC/USD pair is validating the bearish retest.

This recent trend has not really drawn much institutional backing, as investors remained cautious about the Federal Reserve’s taper timing. We might likely see a rally above $50,000 as it’s being fueled by bullish news about the Cuban government reportedly planning to recognize and regulate cryptocurrencies for payments and other positive news emanating from the cryptocurrency space.

I believe that the $53k level is the final hurdle before Bitcoin marches on to a new all-time high if the bears could relinquish it retest this week. For now, BTC has continued to take a breather as it’s struggling to break above the $50k and this has attracted short-term profit-booking.

While Bitcoin battled resistance beyond the $49.5k level, most Altcoins had a mixed few days but ended the week on a positive fashion, trimming recent losses.

BTC daily chart, shows OBV bear divergence and the RSI in mid-point. BTC is churning still, above MA 200 and with bullish momentum slightly fading away.

Technically, BTC has been trending inside a short-term ascending channel, hinting at a move towards the lower trend-line (near $47,000) for a potential pullback towards the upper trend-line (above $50,000). We have two interesting scenarios here- an extended sell-off below the trend-line could risk crashing the BTC/USD pair to near $44,600 or alternatively, the bulls again try to thrust the price above the upper trend-line (above $50,000).

Pic.1:  OBV bear divergence and the RSI in mid-point.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

BTC weekly chart shows, a clear uptrend with a slight warning sign in the upthrust-$49.8k. Both the EMA 8 and MA 50 are not yet captured, giving a slight hope of an upsurge.
Stay focused on key levels and buy the dip. Weekly EMA 8, weekly MA 50, as well as 53k area resistance are all critical for the next move. Loss of that may bring us to 44k, I believe.

Pic.2:  a clear uptrend with a slight warning sign in the upthrust-$49.8k. Source:

Ethereum
Ethereum’s sharp rise mid-July has come to a halt over the last two weeks and the Altcoins indicator is struggling to regain the sharp channel uptrend channel in a well-defined horizontal zone, with upthrust.

Ethereum is sitting in a very short-term $3,050 – $3,250 zone and is also trading either side of the 20-day MA. The recent multi-week high at $3,378 remain close at hand and is likely to come under pressure in the coming days and weeks, especially if the 20-day MA remains supportive.
For now, it’s still bullish, even though the strength is weakening.

Pic.3: Ethereum is sitting in a very short-term $3,050 – $3,250 zone and is also trading either side of the 20-day MA. Source:

 

Top Takeaways
$BTC MA 20 area support / $49500 area resistance
$ETH $2850 area support / $3300 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