Bitcoin continues to trade sideways at the bottom end, indicating a potential deepening of the correction. Let's examine the market situation
Bitcoin (BTC)
After settling below $29,700, BTC has formed a new range, trading sideways between $29,000 and $29,600. Considering the typically less volatile nature of the crypto market over the weekend, we can expect Bitcoin to continue oscillating within this range this Saturday and Sunday.
If BTС breaks out of this sideways trend upwards, it'll encounter resistance within the $29,700 to $31,000 range and at the $30,400 mark. Until these price levels have been tested, it's premature to indicate further levels.
Right now, a continued correction for BTC seems to be the most likely scenario. If it drops below $29,000, the next support levels may sit at $28,550 and a broad buyer's zone between $26,700 and $28,000. As long as BTC continues trading above $25,000, the upward trend remains intact.
BTC chart on the H1 timeframe
Ethereum (ETH)
The ETH price is currently trapped within a support zone of $1,805-$1,850 and a resistance zone of $1,904-$1,930. To maintain its upward momentum, Ethereum needs to solidify its position above the $1,973-$2,026 zone and surpass its yearly high. This scenario, however, largely hinges on a surge in Bitcoin's price, given the high correlation between these two digital assets.
The next area of interest for buyers lies between $1,725-$1,770. As long as the ETH price remains above the $1,700 threshold, the bullish trend will persist.
ETH chart on the H2 timeframe
Yesterday, the U.S. unveiled its quarterly GDP data, and the figures surpassed forecasts, while the unemployment rate dropped. With the deceleration of inflation, the broader economic environment is gradually getting better. This likely spells good news for the crypto market in the long run.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GNCrypto editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNCrypto:
