Daily Technical Analysis BTC & ETH — 22 August 2022
Bitcoin price started a major decline below the $23,000 support zone. BTC gained bearish momentum below the $22,500 and $22,200 support levels.
The decline was such that the price settled below the $22,000 support zone. It even spiked below the $21,000 level and traded as low as $20,797.
The price is now correcting losses above the $21,000 level. It is now trading below the $22,000 level and the 100 hourly simple moving average.
Recently, there was a push above the $21,250 level. However, bitcoin price struggled near the 23.6% Fib retracement level of the recent decline from the $24,414 swing high to $20,797 low.
On the upside, an immediate resistance is near the $21,500 level. There is also a major bearish trend line forming with resistance near $21,550 on the hourly chart of the BTC/USD pair. The first major resistance on the upside sits near the $22,000 level and the 100 hourly simple moving average.
The main resistance is forming near the $22,650 zone. It is near the 50% Fib retracement level of the recent decline from the $24,414 swing high to $20,797 low. A close above the $22,500 and $22,650 resistance levels might start another increase.
If bitcoin fails to clear the $22,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $21,250 level.
The next major support now sits near the $20,800 level. A downside break and close below the $20,800 level might spark another sharp decline. In the stated case, the price might decline towards the $20,000 level.
Ethereum started a major decline below the $1,700 level. ETH traded below the $1,650 support zone to move further into a bearish zone.
It opened the doors for a move below the $1,600 level. Finally, the price traded as low as $1,524 before the bulls appeared. It started an upside correction and traded above the $1,580 level. There was a break above a connecting bearish trend line with resistance near $1,580 on the hourly chart of ETH/USDT.
Ether price climbed above the 23.6% Fib retracement level of the key decline from the $1,878 swing high to $1,524 low. However, the bears were active near the $1,650 zone.
The price is now trading below $1,650 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $1,625 level. The first major resistance is now forming near the $1,650 level. The next major resistance is near the $1,700 level and the 100 hourly simple moving average.
The 50% Fib retracement level of the key decline from the $1,878 swing high to $1,524 low is also near the $1,700 level. A clear move above the $1,700 resistance could even push the price above the $1,750 resistance.
If ethereum fails to rise above the $1,700 resistance, it could continue to move down. An initial support on the downside is near the $1,550 zone.
The next major support is near $1,525, below which ether price might accelerate lower. In the stated case, the price may perhaps decline towards the $1,465 level. Any more losses may perhaps open the doors for a move towards the $1,420 level.
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