The crypto market last week saw notable rises led by Bitcoin, which pleased investors. However, in the last two days, several processes handled by the SEC have caused significant declines in Bitcoin and many altcoins. Let’s examine what is expected on the Bitcoin and Ethereum fronts according to detailed chart analyses.
Bitcoin Chart Analysis
The daily Bitcoin chart continues to feature a narrowing wedge formation. During this period, a break in the support line created selling pressure, but this was left behind with the subsequent rise. The formation of the latest bar where the EMA 9 (blue line) acts as resistance could create short-term selling pressure for Bitcoin.
The most important support level to watch on the daily Bitcoin chart is the support line of the narrowing wedge formation at $60,797. A daily bar closing below this level could create new selling pressure on the Bitcoin front and could be a danger signal for Bitcoin in the long term.
The most important resistance level to watch on the daily Bitcoin chart is the EMA 21 (green line) average at $63,115. A daily bar closing above this level could bring new momentum to Bitcoin and could lead to significant rises.
Ethereum Chart Analysis
The daily Ethereum chart has been featuring a triangle formation for the last three weeks. The structure of the formation provides important clues for investors, but in this period, the EMA 9 average acting as resistance in the latest bar formations could bring a negative scenario to the forefront for Ethereum in the short term.
The most important support level to watch on the daily Ethereum chart is $2,959. A daily bar closing below this level could lead to long-term selling pressure on Ethereum. Additionally, a bar closing below the EMA 200 average at $2,681 could increase the selling pressure even further.
The most important resistance level to watch on the daily Ethereum chart is the EMA 21 average at $3,105. A daily bar closing above this level could help Ethereum’s price gain momentum. Enjoy the new episode of our technical analysis series.
