After hitting a yearly high of $31,800, Bitcoin has continued to move sideways. Let's take a look at the market situation for Bitcoin (BTC) and Ethereum (ETH).
Bitcoin (BTC)
The BTC price has been boxed between a support level of $29,500 and a resistance level of $31,500 for over a month. Considering the brief surge and a new annual high, it seems plausible for Bitcoin to break out of this sideways trend to establish a new low. If this scenario plays out, Bitcoin could test buyer zones between $28,600-$29,200, and if the correction intensifies, the broader range of $26,800-$28,000.
The sellers' orders are set within the upper limit of this sideways trend and the resistance zone of $31,600-$32,600.
BTC chart on the H3 timeframe
Ethereum (ETH)
While ETH correlates with BTC, its price has been on an upward trajectory for the past two weeks. Currently, the asset is navigating between a support level at $1,900 and a resistance zone between $1,973 and $2,026. The psychologically significant $2,000 mark was breezed past swiftly. Hence, if the prevailing resistance zone gets breached, ETH is likely to continue its ascension towards the range of $2,066-$2,141, possibly breaking through it, given that, unlike Bitcoin, Ethereum has not yet updated its yearly peak.
In the event of a downward correction in Bitcoin, the initial support zone for Ethereum will be set at $1,805-$1,850. Below this, buy orders are positioned within the $1,724-$1,770 range and at the $1,700 level.
ETH chart on the H2 timeframe
While the overall market sentiment remains positive, the landscape can change rapidly. Notably, the SEC hasn't approved any Bitcoin ETF yet. Furthermore, the US regulator plans to appeal the court's decision in the Ripple case.
Altcoins, which had surged on the news of Ripple's triumph over the SEC, have also countered their growth due to Bitcoin's dip to $30,000. For the start of an altcoin season, the market sentiment needs to maintain its positivity.
Check out GNCrypto for the latest cryptocurrency rates and chart analysis.
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:
