Saturday, May 18, 2024

Bitcoin managed to rebound over the $30,000 mark on Monday following a recent dip, as traders braced themselves for a significant week of US economic announcements, the focal point of which will be the inflation data. June’s inflation rate is projected to fall to 3.1%, marking a near two-year low. Meanwhile, Ethereum’s value also stumbled on Monday, maintaining a value less than $1,900.

Bitcoin

Bitcoin (BTC) opened the week’s trading around the $30,000 price point, rebounding after it had fallen below this threshold over the weekend.

BTC/USD climbed to a daily high of $30,427.59 on Monday, following a weekend low of $29,985.39.

This recovery happened as the bear market resisted a downward break through the recent support level at $29,900.

Bitcoin chart by TradingView

The last four days have seen BTC mainly in a consolidation phase, causing a change in the direction of the 10-day (red) moving average.

In contrast to the upward trend of recent weeks, the moving average now appears to have leveled off, indicating a possible downswing in the near future.

Furthermore, the relative strength index (RSI) is currently at 57.75, just slightly below the limit at 58.00.

Should a breakout not occur, there’s a decent possibility that BTC might face further depreciation in the upcoming days.

Ethereum

Ethereum (ETH) continued its Monday trading under the $1,900 mark, nearly 5% lower compared to the same period the previous week.

ETH/USD reached a daily low of $1,848.78 at the beginning of the week, trading nearly $30.00 higher the day before.

This has led Ethereum’s 10-day (red) moving average towards a potential downward crossing with its 25-day (blue) counterpart.

Ethereum chart by TradingView

In the event of such a cross, the initial target could be a price support at $1,815, last observed on June 30.

The price strength currently stands at 50.35, however, a dip below the imminent support level of 48.00 could likely trigger a sell-off.

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Could this recent downturn be attributed to profit realization? Please share your views in the comments section below.

Frequently Asked Questions (FAQs) about Bitcoin and Ethereum Technical Analysis

What is the current status of Bitcoin and Ethereum?

Bitcoin managed to recover over the $30,000 mark after a recent dip, while Ethereum’s value stayed under $1,900.

What is the expectation for the upcoming US economic data?

The forthcoming US economic data is expected to be significant, with the main focus being on the inflation report. The inflation rate for June is projected to fall to 3.1%, marking a nearly two-year low.

Why might Bitcoin face further depreciation in the coming days?

Bitcoin might face further depreciation in the coming days if it fails to break out from the current consolidation phase. This is indicated by the leveling off of the 10-day moving average and a relative strength index (RSI) marginally below the ceiling at 58.00.

What is the current trend for Ethereum?

Ethereum is trading below $1,900, nearly 5% lower than the same period the previous week. If the price strength dips below the imminent support level of 48.00, a sell-off could likely occur.

Could the recent downturn in Bitcoin and Ethereum be due to profit-taking?

It’s possible. However, multiple factors contribute to market trends, and it’s difficult to attribute the downturn to a single cause without further analysis.

More about Bitcoin and Ethereum Technical Analysis

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3 comments

DayTraderJoe July 11, 2023 - 1:36 am

‘preciate the analysis. Helped me make sense of whats happening with BTC and ETH right now.

Reply
HodlQueen July 11, 2023 - 4:17 am

am i the only one thinking its not just profit taking? I mean other factors surely must be in play!

Reply
BillyTheTrader July 11, 2023 - 9:09 pm

fingers crossed that the US economic data will give a bit of a boost to the crypto market. it’s been a tough few weeks!

Reply

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