Daily Technical Analysis BTC & ETH — 12th May 2022
In order to support you and the crypto community with trading decisions, WenX is serving you with Daily Technical Analysis updates on BTC & ETH.
Bitcoin price attempted a recovery wave above the $32,000 level. However, BTC struggled to continue higher and started a fresh decline below $31,000.
There was a clear move below the key $30,000 support zone and the price settled below the 100 hourly simple moving average. The decline gained pace below the $29,500 level. Finally, there was a move below the $28,000 level, and the price traded to a new multi-week low at $27,700.
Recently, there was a minor upside correction above $29,000. Bitcoin recovered above the 23.6% Fib retracement level of the recent decline from the $32,132 swing high to the $27,700 low.
However, the bears were active near the $30,000 resistance zone. The price remained below the 50% Fib retracement level of the recent decline from the $32,132 swing high to $27,700 low. There is also a key bearish trend line forming with resistance near $31,000 on the hourly chart of the BTC/USDT pair.
The next key resistance could be near the $31,500 level. The key breakout zone is still near the $32,000 zone, above which the price might start a steady recovery wave in the near term.
If bitcoin fails to clear the $30,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $28,200 level.
The next major support is seen near the $27,700 level. A downside break and close below the $27,700 support might accelerate losses. The next major support could be $27,200, below which the bears might aim a move towards the $26,500 support zone.
Ethereum failed to extend the recovery wave above the $2,400 level. ETH started another decline and traded below the $2,320 support zone.
There was a break below a key bullish trend line with support near $2,250 on the hourly chart of ETH/USDT. The pair tumbled below the $2,200 and $2,100 levels. Ether price even broke the $2,000 support zone and settled below the 100 hourly simple moving average.
It traded towards $1,950 and is currently showing signs of more losses. If there is a recovery wave, the price might face resistance near the $2,050 level.
The 23.6% Fib retracement level of the recent decline from the $2,451 swing high to $1,939 low is also near $2,060. The first major resistance is near the $2,150 level. The main resistance is now forming near the $2,220 level.
The 50% Fib retracement level of the recent decline from the $2,451 swing high to $1,939 low is also near $2,200. A close above the $2,200 level could open the doors for a decent increase. In the stated case, ether price might rise towards the $2,350 resistance.
If ethereum fails to recover above the $2,200 resistance, it could continue to move down. An initial support on the downside is near the $1,940 zone.
The next major support is near the $1,880 level. A daily close below the $2,000 level might spark more losses below $1,880. The price could dive towards the $1,700 level in the stated case. The next major support might be near the $1,550 and $1,500 levels in the near term.
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