Daily Technical Analysis BTC & ETH — 20th 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 found support near the $28,500 zone after a steady decline. A base was formed near $28,600 and started a fresh increase.
There was a clear move above the $29,500 resistance zone and the 100 hourly simple moving average. The bulls even pushed the price above the $30,000 resistance zone. However, they are now facing an uphill task near the $30,600 zone.
There is also a major bearish trend line forming with resistance near $30,400 on the hourly chart of the BTC/USDT pair. A high is formed near $30,721 and the price is now consolidating gains.
The price is trading above the 23.6% Fib retracement level of the upward move from the $28,590 swing low to the $30,721 high. An immediate resistance is near the $30,400 level. The next major resistance is near the $30,600 level.
A clear move above the $30,400 and $30,600 resistance levels might start a fresh increase in the near term. The next key resistance could be near the $31,500 level, above which the price might gain bullish momentum.
If bitcoin fails to gain pace above the $30,600 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $30,000 level. The first major support is near the $29,800 level and the 100 hourly SMA.
The next major support sits near the $29,655 level. It is near the 50% Fib retracement level of the upward move from the $28,590 swing low to the $30,721 high. A downside break and a close below the $29,650 support might start another decline. In the stated case, the price could drop towards the $28,500 level.
ETH is dropping inside a falling wedge on a daily time frame. It’s worth noting that the wedge bottom is lined with the $1700 horizontal support level which could signal a trend reversal.
As a result, if the bulls can hold the green zone, the price will be more likely to rise towards the $2450 level of static resistance. The price is more likely to begin a protracted regression phase if the bears continue to suppress the market and breach below the green support zone.
ETH is trading on dynamic support against Bitcoin, which has blocked additional price decreases four times in the past.
The world’s second-largest cryptocurrency, down 4.1 percent in the last 24 hours to US$1,974, has lost 48% of its value since 2022.
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