Watch These Crucial Levels As Bitcoin, Ethereum Continue To Trade Under Pressure
Günay Caymaz | Sep 24, 2022 00:22
- Bitcoin rebounded from the $18,200 level this week
- However, the world's largest cryptocurrency still hasn't been able to break the $19,500 resistance
- Likewise, Ethereum bulls should keep trying to reach the $1,320 resistance
Bitcoin is back to $18,860 after testing $19,000 on reaction buying from this week's oversold levels. Ethereum has reversed its recent selling momentum at $1,250 as bulls try to reach the $1,320 resistance.
The above chart shows that Bitcoin set the $18,200 level as the bottom zone this week. The average level of $19,500 held as solid resistance throughout the week. The magnitude of the descent after the Fed's interest rate decision was smaller than on September 13, after U.S. CPI rates came out.
The latest price movement, however, shows that the recent macroeconomic data has likely been fully priced in by the BTC market.
According to the short-term price action, $19,250 is the closest support level for BTC/USD today, while the $19,500 level is the immediate above resistance. After this level, BTC may see another resistance at $19,900 before the $20,000 mark.
If the demand for BTC increases in weekend trading—and if we have a weekly close in the range of $19,500 - 900, the odds are that the cryptocurrency will step into the $20,000 band next week. In such a scenario, the $20,900 - 21,730 range should come up as the next target.
On the other hand, on the daily outlook, the Stochastic RSI recorded a slight upward momentum from the oversold zone after slipping below the 20 levels.
This momentum may increase if BTC closes above $19,500 on the hour and signals from the Stochastic RSI indicator improve. Furthermore, the average directional movement index (ADX) indicates that the upward movement has strengthened with the purchases that started from the low on September 21.
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In the lower region, the $18,400 - 800 range remains the support area for Bitcoin. A weekly close below this area could lead to a continuation of the downtrend in BTC/USD, in a movement that would likely continue below $17,000.
h2 Ethereum (ETH)/h2Ethereum, which continued its downward trend after the Merge, found footing at the $1,250 level after losing the former $1,320 support at the beginning of the week.
If Ethereum manages to stay above $1,320 today and on the weekend trading, buying demand will likely increase, and the cryptocurrency could move towards the $1,450 - $1,590 range. If this area is exceeded with daily closes, the possibility of ETH/USD moving to $1,750 - $1,800 will increase.
However, if ETH's price fails to stay above $1,320, the downward momentum can be expected to continue towards $1,100 with an increase in selling pressure.
h2 Geopolitical Risks To Keep Crypto Markets Under Pressure/h2Although the pivotal week for global central banks is mostly behind us, investors should consider that several geopolitical risks may yet be priced in the crypto market in the coming days,
Russia's declaration of partial mobilization and the fact that the referendum process in the separatist regions of Ukraine, Donetsk, and Luhansk will start today and continue until the beginning of the week can be seen as a pressure factor on risky markets, including cryptocurrencies.
If these regions declare their allegiance to Russia as a result of the referendum, it could lead to a re-escalation of tensions between Ukraine and Russia.
Furthermore, the energy crisis in the European region remains on the agenda, pushing mining costs upward. In addition, the dollar continued to strengthen in global markets, exercising pressure on the correlation between BTC/USD and ETH/USD.
Disclosure: The author does not hold any of the securities mentioned in this article.
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