May 19, 2022
Daily Technical Analysis BTC & ETH — 19th 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 failed to clear the $30,500 resistance zone and started a fresh increase. There was a clear move below the $29,500 and $29,000 support levels.
Besides, there was a break below a connecting bullish trend line with support near $29,600 on the hourly chart of the BTC/USDT pair. The pair is now trading below $30,000 and the 100 hourly simple moving average. It tested the $28,500 support zone.
A low is formed near $28,589 and the price is now consolidating losses. An immediate resistance is near the $29,100 level. It is near the 23.6% Fib retracement level of the recent decline from the $30,742 swing high to $28,589 low.
The next major resistance is near the $29,650 level. It is near the 50 Fib retracement level of the recent decline from the $30,742 swing high to $28,589 low. A clear move above the $29,500 and $29,650 resistance levels might start a fresh increase in the near term. The next key resistance could be near the $30,500 level, above which the price might rise towards $31,200.
If bitcoin fails to gain pace above the $29,650 resistance zone, it could continue to move down. An immediate support on the downside is near the $28,800 level.
The next major support is near the $28,500 level. A downside break and close below the $28,500 support might start a major decline. In the stated case, the price could drop towards the $27,500 level.
Ethereum price set an all-time high at $4,868 on November 10, 2021 after a 579% year-to-date gain. This impressive rally faced two major sell-offs: the first crash pushed ETH down by 55% and set a swing low at $2,160. The second leg knocked the smart contract token by 52% and set a lower low at $1,700. This development since the all-time high is a clear indication of a downtrend with distinctive lower highs and lower lows. Since this trend is occurring on a macro time frame, it indicates that ETH and larger crypto markets are in a bear market.
For now, the Ethereum price is bouncing off the $1,730 support floor which also happens to be the high-volume node of the 2021 volume profile. While there is a pause from the sell-off, a failure to set a higher high could further trigger another crash that could shatter the $1,730 barrier. In such a case, ETH price could slide to the next stable barrier — $1,260, coinciding with 2021’s second high volume node. This is the second most significant level that could serve as a potential reversal zone with the ability to trigger an uptrend.
While an upswing from this level might be possible, what lies below this level is extremely critical and is the best zone for dollar-cost averaging or buying spot ETH. Assuming sellers shatter the $1,260 barrier, the 2020 and 2021 volume profile shows that there is a massive gap extending from $911 to $595 — termed “The Void.” Within this area also lies the fair value gap, aka price inefficiency, that extends up to $661. Therefore, the confluence of these levels around $661 is where long-term investors could accumulate ETH. This is because the risk of a sell-off around the levels mentioned is extremely low.
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