Daily Technical Analysis BTC & ETH — 16th May 2022
Bitcoin price started a decent recovery wave from the $25,000 support zone. BTC gained pace for a move above the $28,000 level and the 100-hourly simple moving average.
It even cleared the $30,000 resistance zone. However, the bulls struggled to stay in action above the $31,000 level. A high is formed near $31,390 and the price is now slowly moving lower. There was a move below the $31,000 level.
Bitcoin moved below the 23.6% Fib retracement level of the upward move from the $28,600 swing low to the $31,390 high. The price is now approaching the $30,400 support.
There is also a key bullish trend line forming with support near $30,400 on the hourly chart of the BTC/USDT pair. The next major support is near the $30,000 zone. It is near the 50% Fib retracement level of the upward move from the $28,600 swing low to the $31,390 high.
A downside break and a close below the $30,000 support might start a major decline. The price could decline towards the $29,000 level in the stated case. The next major support is near the $28,000 level, below which the price might start a fresh bearish wave.
If bitcoin stays above the $30,000 support zone, it could start a fresh increase. An immediate resistance on the upside is near the $31,000 level.
The next major resistance is near the $31,400 level. A clear move above the $31,000 and $31,400 resistance levels might start a fresh increase in the coming sessions. The next key resistance could be near the $32,500 level, above which the price might rise above $33,000.
ETH/USDT enter a recovery mode, after it tumbled and hit support at $1685. Now, the recovery brought the crypto back above the $2000 mark, but it remains well below the downside resistance line drawn from the high of April 3rd, and thus, even if we see some further advances, we will consider the short-term outlook to still be negative.
The recovery may continue for a while more, with the crypto perhaps overcoming the $2195 barrier, marked by the inside swing low of May 10th. That said, the bears could still take charge from near the $2455 resistance zone, marked by the peaks of May 10th and 11th, and a potential dive could lead them to the $1865 barrier, marked by an intraday swing low formed yesterday afternoon. A dip below that barrier could pave the way towards the low of the day at $1685, the break of which would confirm a forthcoming lower low on the daily chart and may see scope for declines towards the $1395 territory, which provided support back in February 2021.
Thanks for reading!
Feel free to share your thoughts, feedback, and suggestions in the comments below. If you like this article share it on social media and with your friends! Follow us and stay tuned for daily updates!
Risk Disclaimer: Digital Asset Trading can be a challenging and potentially profitable opportunity for investors. Users are strongly encouraged to carefully consider their investment objectives, level of experience, and risk appetite.