The cryptocurrency market witnessed significant gains last week, led by Bitcoin, which brought joy to investors. However, in the past two days, certain actions taken by the SEC have resulted in significant declines in both Bitcoin and various altcoins. Let’s explore what can be expected for Bitcoin and Ethereum based on detailed chart analyses.
Bitcoin Chart Analysis:
The daily chart for Bitcoin continues to show a narrowing wedge formation. During this period, the support line experienced a break, leading to selling pressure. However, this was overcome by subsequent price increases. The latest bar formation, where the EMA 9 (blue line) acts as resistance, may create short-term selling pressure for Bitcoin.
The most crucial support level to monitor on the daily Bitcoin chart is the support line of the narrowing wedge formation at $60,797. If a daily bar closes below this level, it could introduce new selling pressure and pose a long-term danger signal for Bitcoin.
On the other hand, the most significant resistance level to observe on the daily Bitcoin chart is the EMA 21 (green line) average at $63,115. If a daily bar closes above this level, it could generate new momentum for Bitcoin and potentially lead to substantial price increases.
Ethereum Chart Analysis:
The daily chart for Ethereum has been exhibiting a triangle formation over the past three weeks. The structure of this formation provides important insights for investors. However, in this period, the latest bar formations have seen the EMA 9 average acting as resistance, which could indicate a negative scenario for Ethereum in the short term.
The most critical support level to keep an eye on in the daily Ethereum chart is $2,959. If a daily bar closes below this level, it could result in long-term selling pressure for Ethereum. Furthermore, if a bar closes below the EMA 200 average at $2,681, it could further increase selling pressure.
Conversely, the most significant resistance level to monitor on the daily Ethereum chart is the EMA 21 average at $3,105. If a daily bar closes above this level, it could facilitate Ethereum’s price gaining momentum.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks. It is recommended to conduct thorough research before making any investment decisions.