Daily Technical Analysis BTC & ETH — 16 June 2022
BTC was priced at $21,000 on the one-day chart. BTC last traded at this price level in the month of December of 2020. It has been a consistent fall for BTC after the coin lost support at $28,000. Immediate resistance level for the coin stood at $22,000.
The support zone was between $19,000 and $16,000 respectively. Consistent sell-off can push BTC to $13,000 going by the massive bearish momentum the coin has gathered. Volume of Bitcoin traded increased and was in red signifying bearish assertion in the market.
Buying strength plummeted sharply on the one-day chart. The cryptocurrency was massively undervalued at the time of writing. The Relative Strength Index was beneath the 20-mark which is a sign of bearishness. RSI pointed towards seller strength in the market.
A price reversal usually occurs after an intense sell-off. The other indicators however hint that bearishness might continue over the immediate trading sessions. Price of BTC was below the 20-SMA which signalled that sellers were driving the price momentum in the market.
Ethereum started a fresh decline below the $1,100 level. The price traded to a new multi-month low and almost tested the $1,000 support zone.
A low was formed near $1,013 before the price started an upside correction. There was a recovery wave above the $1,120 and $1,150 levels. Ether price climbed above the 23.6% Fib retracement level of the key drop from the $1,546 swing high to the $1,013 low.
Besides, there was a break above a major bearish trend line with resistance near $1,205 on the hourly chart of ETH/USDT. However, the price is still trading below $1,280 and the 100 hourly simple moving average.
The bears were active near the $1,260 resistance zone. The next major resistance is near the $1,280 zone and the 100 hourly simple moving average. The 50% Fib retracement level of the key drop from the $1,546 swing high to the $1,013 low is also near the $1,280 zone.
A clear move above the $1,280 resistance zone may perhaps start a decent upward move. The next major resistance is near the $1,420 level. Any more gains could start a move towards the $1,550 resistance.
If ethereum fails to rise above the $1,280 resistance, it could start a fresh decline. An initial support on the downside is near the $1,180 zone.
The next major support is near the $1,125 zone. A clear move and break below the $1,125 zone could start a major decline. In the stated case, the price could slide towards the $1,000 support zone in the near term.
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