Bitcoin (BTC) is paring recent losses but it may struggle to push appreciably higher as strong resistance lies ahead.
Bitcoin and Ethereum Charts and Analysis
- $39.6k – When support turns to resistance.
- Ethereum (ETH) picking up a bid.
Risk-on markets are picking up a small bid this morning as traders digest the recent imposition of sanctions on Russia and what follows next. The sanctions imposed by the EU, US, and the UK are seen as being on the lenient side, keeping the lines of communication with Russia open. While nothing that has happened suggests that talks will continue, markets are currently pricing in a small possibility. Risk markets have been hit hard over the past few weeks and today’s move may be more consolidation than a longer-lasting risk-on move.
Bitcoin is pushing back towards the $39.6k level, a spot that was seen as important support until the recent break lower. This level will now act as resistance to the current move higher and will need to be broken conclusively to allow Bitcoin to move higher. Above here $42k comes into focus. The daily chart shows BTC in oversold territory and this may help to underpin the move higher in the short term.
Bitcoin Daily Price Chart
Chart via TradingView
Ethereum is trading 5% higher of the session so far on the general risk-on uplift. The daily chart shows the series of lower highs from the November 10 high remains in place although recent price action has broken the string of lower lows. To add weight to a move higher, Ethereum needs to break, and consolidate, above $3,289 to invalidate the series of lower highs. The CCI indicator is in oversold territory while the ATR is at a multi-month low.
Ethereum Daily Price Chart
Chart via TradingView
The Ethereum/Bitcoin spread is currently above the bearish trend line but has been following the trend lower. The spread has made a short-term base either side on 0.0680 and if this holds, and the pair continues to trade above the bearish trendline, then last week’s double high at 0.0720 is likely to be re-tested.
Ethereum/Bitcoin Daily Price Chart
What is your view on Bitcoin and Ethereum – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.
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