Cryptocurrency investors can breathe a big sigh of relaxation. Indeed, Bitcoin and Ethereum have just welded their best week since the end of March. The icing on the cake, they temporarily remove the threat under their respective supports. With, as a bonus, a validation of a return configuration in daily units which makes it possible to continue the technical rebound in progress.
In the wake of a week that could be lively at both microeconomic and macroeconomic level, we will know very quickly whether the technical rebounds of the first two digital currencies would be halfway or at their end. And the latest technical analysis was currently showing some technical signals in favor of the first option.
And if it were to be like this, let’s see what are the resistances that must be broken in order to preserve this positive momentumat least in the short term.
Bitcoin – $26,000 in sight before $30,000?
Bitcoin starts the week hesitantly, remaining stuck around the $22,000 support. Especially since it is a level to maintain, because it represents the neck line or the former resistance of the triple bottom confirmed in daily units. And a rollback could normally occur if the practice decides to follow the theory of technical analysis.
In this sense, this would mean that prices are consolidating slightly to better attack the resistance at $26,000. And at the same time, the ultimate goal of the triple bottom would be largely achieved. With positive repercussions on the technical indicators which were already emerging from their bad unit spiral on a weekly basis.
In the event that the $26,000 provided to be assigned, BTC prices would feel like they are pushing their wings to rally the resistance of $30,000 and why not caress the descending line of its bear market since its last ATH in November 2021. And it would finally be from this precise moment that the sellers would act accordingly.
As such, Weinstein’s phase 4 which has settled since the double check below the resistance of $46,000 and the 30 week moving average (weekly MM30), could sooner or later abort the technical rebound. While knowing thata descending line crossing with a still declining weekly 30MA would potentially be a false signal for a trend reversal.
Ethereum – Already ahead of Bitcoin!
Where there is no photo between Bitcoin and Ethereum is that the latter was already ahead of its technical rebound. Exactly car, the digital currency founded by Vitalik Buterin had successively crossed the resistance of $1250 to validate the triple bottom in daily units. Then the resistance of $1400 which now becomes a support.
Especially since this followed three consecutive weekly bullish candles. And given the violent rebound from the $1000 support, it is legitimate to see ETH prices opening lower at the start of the week. A throwback could be on the ropes, with a preferential fulcrum at $1250. History to better affirm the triple bottom.
Assuming that the potential throwback was an intermediate step to overcome the resistance of $1700, a door would open towards the bottom of his last interval or horizontal channel around $2300. This represented a technical rebound of Ethereum of 130% from the $1000 support, to be put into perspective in relation to the big stampede since its last ATH in November 2021.
Just like bitcoin, phase 4 of Weinstein which took place since the double failure under the resistance of $3400 and the moving average at 30 weeks (weekly MA 30), would lead to stop the technical rebound. And beware of investors not to take for granted a passage of ETH prices beyond the descending line or risk finally seeing a false major buy signal with a weekly 30-MA still sliding below resistance.
BTC and ETH – A quiet summer before the ultimate capitulation?
After a deadly spring that saw the Bitcoin and Ethereum bear market grow with several episodes of stress synonymous with general panic among investors, the summer could be under the sign of appeasement. And it wouldn’t be so bad considering the current uncertainties on the financial markets, which until proven otherwise, have not budged one iota.
The extension of their technical rebounds could end this black series since the end of last March. But as we hammer it incessantly week after week, their Weinstein 4 phases would risk putting off buyers. Unless an exceptional event has disrupted the balance of power vis-à-vis the sellers.
Not only, the crisis of last spring will not go away as if nothing had happened. But even worse, their current bear markets would not have exhausted their potential. Although we deplore financial difficulties for many players in the industry, monetary tightening by central banks will make the cost of capital expensive, and therefore put pressure on the most vulnerable asset classes, in particular cryptocurrencies. .
That is why investors should brace for another massive Bitcoin and Ethereum dump towards the $12,000 and $700 supports respectively. With the strange coincidence that this could happen when the FED decides to accelerate the pace of the reduction of its asset balance sheet, by September. Basically, the summer period would serve as a truce to help sellers recharge their batteries.
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