Bitcoin price extended increase above the $31,000 zone. It even broke the $32,000 resistance on a couple of occasions, but the bears protected more gains above $32,200.
The recent swing high was formed near $32,400 before the price started a downside correction. There was a move below the $32,000 level. The price corrected and tested the 23.6% Fib retracement level of the upward move from the $29,085 swing low to $32,400 high.
It is now testing the $31,800 zone. There is also a key bullish trend line forming with support near $31,800 on the hourly chart of the BTC/USDT pair. Bitcoin is also well above the $31,200 level and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $32,000 level. The next major resistance is near the $32,200 and $32,400 levels. A clear move above the $32,400 resistance level could start another increase. The price could rise towards the $32,500 resistance in the stated case. The next major resistance sits near the $33,400 level.
If bitcoin fails to clear the $32,400 resistance zone, it could start a downside correction. An immediate support on the downside is near the $31,800 level and the trend line. A downside break below the trend line could send the price towards the $30,800 support.
The 50% Fib retracement level of the upward move from the $29,085 swing low to the $32,400 high is also near the $30,800 level. Any more gains might open the doors for a move towards the $30,000 support.
ETH was priced at $1928 at the time of writing. The coin’s nearest support line was $1900, a fall from which could push ETH near $1700.
The break from the consolidation caused the coin to rise by 4% over the last 24 hours. For the coin to invalidate the consolidation bit, the coin has to attempt trading near the $2100 and then at $2400.
If bulls the tire out, Ethereum could be sandwiched between $1700 and the $1900. The volume of the coin declined in the last trading session.
The volume bar was red in colour which indicated that the bearish pressure still remained in the market.
Buyers came back in the market as demand for the coin increased on the one day chart. The Relative Strength Index noted a move upwards as buyers regained confidence.
Despite the increase in the buying strength, RSI noted a small downtick which could mean that selling pressure was back in the market.
The coin was priced above the 20-SMA which is a sign of bullishness and push from buyers cause price to rise further. This indicated that price momentum was driven by buyers in the market.
As buyers increased in number as seen on the RSI, Ethereum flashed buy signals on the one day chart.
The indicator showed tightening of the bands which can be related to a change in volatility or an incoming price fluctuation in the market.
Although Ethereum rose on the charts, indicators have painted a mixed signal. Only with sustained buying strength can Ethereum invalidate the bearish thesis completely.
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