Daily Technical Analysis BTC & ETH — 8 August 2022
Bitcoin price remained above a major support zone near the $22,400 and $22,500 levels. The price started a decent increase above the $22,800 and $22,950 levels.
The upward move was such that the price climbed above the $23,000 level and the 100 hourly simple moving average. The price surpassed the 50% Fib retracement level of the downward move from the $23,477 swing high to $22,755 low.
Besides, there was a break above a key bearish trend line with resistance near $23,200 on the hourly chart of the BTC/USDT pair. The pair is now trading near the $23,300 level.
It is struggling near the 76.4% Fib retracement level of the downward move from the $23,477 swing high to $22,755 low. The next key resistance is near the $23,500 zone. A close above the $23,500 resistance zone could start a steady increase. In the stated case, the price may perhaps rise clear the $24,500 resistance.
If bitcoin fails to clear the $23,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the $23,100 level.
The next major support now sits near the $22,750 level. A close below the $22,750 level might start a move towards $22,500. Any more losses might send the price towards $22,000 level.
Ethereum (ETH) also consolidated on Saturday, with traders nervous as prices moved closer to a key resistance level.
The world’s second-largest cryptocurrency moved to a low of $1,661.86 earlier in today’s session.
However, as the day progressed, ETH/USDT rallied, and as of writing, is currently trading around the $1,714 region.
As seen on the chart, yesterday’s decline came as ETH neared a ceiling of $1,780, with price strength also encountering a resistance of its own.
The 14-day relative strength index (RSI) is currently tracking at 62.80, after failing to break out of its ceiling of 65 on Friday.
This was one of the catalysts to send ETH lower, and should bulls reenter with significant force, this will be their first obstacle to conquer.
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