During the geopolitical problem of the Russia-Ukraine war, the largest cryptocurrency has been highly turbulent over the last two months. On January 24th, the corrective rally established the current lower low at $33,000. The buyer’s recovery efforts increase the coin price by 35%; yet, the $45,000 represents a hard barrier for them.
Bitcoin (BTC)- Two important support levels of $41,600 and $39,5621 were pushed out by a recent bearish reversal from the $45,000 barrier. Bitcoin’s price fell 19% from its swing high, reaching $36,000 support.
The sellers attempted to prolong their losses on February 24th, but the buyers took control, resulting in a long-tail rejection candle closing above the $36,000 level. Following the rally, the BTC price increased by 8%, resetting the $40,000 barrier level.
The long-wick candle at this resistance, on the other hand, shows that sellers are protecting this level, blocking a further rally. If bears keep the price below $40,000, the price will be pushed down to the $36,000 support level, raising the prospect of a downtrend continuation.
Ethereum (ETH)- For the first few days of the week, the price appeared to be an excellent shorting opportunity. The shaky resilience of the $2,500 support level attracted a big number of potential short sellers.
The market movement that followed Thursday’s sell-off resulted in a tremendous 20% rebound that has continued into Friday’s session. Bulls are hoping to push Ethereum’s price above the Ichimoku Cloud, which is where the current weekly candlestick began.
If bulls close over the Ichimoku Cloud, Ethereum will likely attack the next resistance level, the weekly Tenkan-Sen at $3,700. Unfortunately, the negative potential exists, especially considering the confluence of normal weekend volatility and the Russian invasion.
On the weekly chart, a closure below the weekly Ichimoku Cloud at or below $2,325 would complete an Ideal Bearish Ichimoku Breakout, triggering a sudden drop to the $1,800 value level and debunking any bullish view in the near term.
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DISCLAIMER:
Any opinions, news, research, analyses, prices, or other information discussed in this presentation or linked to from this presentation are provided as general market commentary and do not constitute investment advice.
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