Daily Technical Analysis BTC & ETH — 21st Feb 2022
Bitcoin extended decline below the $40,000 support against the US Dollar. BTC is correcting losses, but it might face resistance near the $39,500 zone.
Bitcoin extended decline below the $40,000 and $39,500 support levels. The price is trading below $40,000 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $39,500 on the hourly chart of the BTC/USD pair. The pair could correct higher, but upsides might be limited above $40,000.
A clear move above the $40,000 resistance zone might start a decent increase. The next major resistance is near $40,450 and the 100 hourly simple moving average, above which the price might rise towards the $41,200 level.
If bitcoin fails to start a recovery wave above the $39,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $38,500 zone.
The next major support is seen near the $38,000 level. If there is a downside break below the $38,000 support zone, the price might gain bearish momentum for a move to $36,800.
The Ethereum price was subsequently unable to maintain the support level at $2,900 and fell back to $2,700. In November, the ether price was still over $4,800. In the last 3 months, the big correction started. At its lowest point, the price was below $2,500.
Ethereum (ETH) also broke its support level at $2,815 and kept going down. Even though the selling volume is decreasing, buyers do not seem ready to buy back the main altcoin at the current level. In this case, the more likely scenario is the retest of the level at $2,300 within the next few days. Ethereum is trading at $2,740 at press time.
However, if this resistance is not broken, there could be heavy losses in the Ethereum price. Accordingly, we could see the price drop to a level of $1,700. This crash would also affect other altcoins.
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