The cryptocurrency market experienced significant increases last week, with Bitcoin leading the way and pleasing investors. However, recent actions taken by the SEC in the past two days have resulted in significant declines in Bitcoin and several altcoins. Let’s take a closer look at what can be expected for Bitcoin and Ethereum based on detailed chart analyses.
Bitcoin Chart Analysis:
The daily chart for Bitcoin continues to show a narrowing wedge formation. During this period, there was a break in the support line, which created selling pressure. However, this was left behind as the price subsequently rose. The formation of the latest bar, where the EMA 9 (blue line) acts as resistance, could potentially create short-term selling pressure for Bitcoin.
The most crucial support level to monitor on the daily Bitcoin chart is the support line of the narrowing wedge formation at $60,797. If a daily bar closes below this level, it could generate new selling pressure and pose a long-term risk for Bitcoin.
On the other hand, the most significant resistance level to keep an eye on is the EMA 21 (green line) average at $63,115. If a daily bar closes above this level, it could bring new momentum to Bitcoin and potentially lead to significant price increases.
Ethereum Chart Analysis:
The daily chart for Ethereum has been showing a triangle formation for the past three weeks. The structure of this formation provides important insights for investors. However, in this period, the EMA 9 average has been acting as resistance in the latest bar formations, which could indicate a negative scenario for Ethereum in the short term.
The most critical support level to watch on the daily Ethereum chart is $2,959. If a daily bar closes below this level, it could result in long-term selling pressure for Ethereum. Additionally, if a bar closes below the EMA 200 average at $2,681, it could further increase the selling pressure.
On the upside, the most significant resistance level to monitor is the EMA 21 average at $3,105. If a daily bar closes above this level, it could help Ethereum gain momentum and potentially see an increase in price.
Please enjoy the latest episode of our technical analysis series.
[Image Here]
You can stay updated with our news on Telegram, Facebook, Twitter, and Coinmarketcap.
Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks. It is recommended to conduct thorough research before making any investment decisions.
