For the past two weeks, bitcoin bulls have maintained their control over the cryptocurrency. Investors in BTC who were looking for more gains were glad to hear this. The cryptocurrency could now be observed reaching its short-term high range, while investor worries were starting to return.
Recently, the volume of Bitcoin supply that is still in loss fell to a new four-week low. This implied that there was significant accumulation in October, and the next rally was supported by this solid demand. Does this suggest that the support range for the rest of 2022 will be the most recent lows?
Bitcoin(BTC)- Bitcoin(BTC)- Due to the recent rise, investors who bought at the bottom of the range have indeed made significant gains. By way of explanation, there may be plenty of exit liquidity, notably if another wave of bearish sell pressure emerges.
For the past two weeks, Bitcoin has been trading in an upward price channel. A retest of its present two-week resistance zone also occurred during its most recent price movement. The presence of this resistance, along with the reported rise in exchange inflows and decline in exchange outflows, may signal the beginning of the sell trend.
Additionally, during the past two days, BTC has witnessed a stronger relative strength. But before Bitcoin could be said to be overbought, the Relative Strength Index (RSI) still has some space to spare.
There may yet be some upside, but recent developments indicate otherwise. A possible resumption of sell pressure for BTC is suggested by the observed rise in exchange inflows.
Ethereum(ETH)- Currently, sellers are in control, and they have the power to significantly halt its upward trend and push it down to the $1,500 area or possibly below. The most dominant altcoin capitalized on the late-October surge in the cryptocurrency market, rising all the way to $1,655. To come closer to its $1,700 goal, it made an effort to pass through this zone.
Eventually, the impact of the Federal Reserve’s 75 basis point interest rate rise caught up with the cryptocurrency, causing it to tumble all the way back to $1,500. ETH gained 30% in two weeks, but if selling pressure remains, the cryptocurrency may lose its whole recent gains.
In particular, individuals who started to accumulate while ETH was struggling to even reach the $1,400 region will continue to draw sellers as long as the cryptocurrency holds the $1,600 barrier. The digital currency might drop by 7% and return to a well-known position, the $1,500 support level if more selling pressure does really arise at this time.
After this price drop, Ethereum will form a double-top pattern, indicating an accelerated bearish cycle that will eventually cause the asset to go below the support zone. Even worse for ETH is that its Relative Strength Index (RSI) is revealing weakness in contrast to its earlier rising trend, which appears to confirm the gloomy forecast.
The cryptocurrency position will suffer over the following 30 days as it is expected to go below the $1,400 threshold and settle at a trading price of $1,357.
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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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