Daily Technical Analysis BTC & ETH — 23th May 2022
Bitcoin price remained well bid above the $28,500 support zone. It seems like there was a double bottom pattern formed above $28,500 before the price started a fresh increase.
There was a clear move above the $29,500 resistance zone and the 100 hourly simple moving average. The price even climbed above the $30,000 resistance zone. However, the bears are still active near the $30,600 resistance zone.
The price traded as high as $30,500 and is currently correcting lower. There was a move below the 23.6% Fib retracement level of the upward move from the $29,225 swing low to $30,500 high.
On the downside, there is a key bullish trend line forming with support near $29,800 on the hourly chart of the BTC/USDT pair. It is now trading above the $30,000 level and the 100 hourly simple moving average. An immediate resistance is near the $30,450 level. The next major resistance is near the $30,600 level.
A clear move above the $30,450 and $30,600 resistance levels might start a strong rally in the near term. The next key resistance could be near the $31,500 level, above which the price might rise to $32,500.
If bitcoin fails to clear 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 $29,850 level and the trend line.
The trend line is near the 50% Fib retracement level of the upward move from the $29,225 swing low to $30,500 high. A clear move below the trend line might send the price towards the $28,500 support.
Ethereum was exchanging hands at $2055 at the time of writing. Continued fall below the current price level would cause the coin to trade at $1700. If buyers continue to remain scanty the coin could note a further 30% downfall and trade near $1200.
On the flip side, the coin can trade above the $2000 mark slightly and then attempt to trade above the $2200 mark. The volume of Ethereum traded was still seen in red because bearish pressure had not declined in the market.
ETH’s price was below the 20-SMA line because sellers were driving the price momentum in the market. The Relative Strength Index was also weak in accordance with other techniques. RSI was below the zero-line, just above the 20-mark. This reading meant sellers preceded the number of buyers heavily at the time of writing.
Moving Average Convergence Divergence depicts the price momentum of the market. MACD flashed red histograms beneath the zero-line which indicated a continued bearish price action for the coin.
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