Daily Technical Analysis BTC & ETH — 8 July 2022
Bitcoin price formed a base above the $20,000 level. BTC started a strong increase by clearing the $20,500 and $20,800 resistance levels.
There was a sharp increase and the price climbed above the $21,500 level. It even broke the $22,000 hurdle and settled above the 100 hourly simple moving average. A high is formed near $22,498 and the price is now consolidating gains.
It is trading well above the 23.6% Fib retracement level of the recent increase from the $19,750 swing low to $22,498 high. On the upside, the price is facing resistance near the $22,450 and $22,500 levels.
The next key resistance is near the $22,800 zone. A close above the $22,800 resistance zone could set the pace for a test of the $23,200 level. Any more gains might open the doors for an increase towards the $24,000 level. The next major resistance sits near the $25,000 level.
If bitcoin fails to clear the $22,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the $21,850 level.
The next major support now sits near the $21,250 level or the broken channel trend line zone. It is near the 50% Fib retracement level of the recent increase from the $19,750 swing low to $22,498 high. A close below the $21,250 support zone could push the price to $20,500. In the stated case, there is a risk of a move towards the $20,000 level.
Ethereum remained well supported above the $1,120 level. The price started a fresh increase and was able to clear a major hurdle near the $1,150 level.
It opened the doors for a sharp increase above the $1,200 level. Ether price even broke the $1,250 level and traded to a new monthly high at $1,276. It is now trading above $1,200 and the 100 hourly simple moving average.
The price is testing the 23.6% Fib retracement level of the recent increase from the $1,162 swing low to $1,276 high. There is also a crucial bullish trend line forming with support near $1,210 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $1,275 level.
The next major resistance is near the $1,320 zone, above which the price may perhaps gain strength. In the stated case, the price could rise towards the $1,350 resistance. If the bulls remain in action, the price might climb towards the $1,420 zone.
If ethereum fails to rise above the $1,275 resistance, it could start a downside correction. An initial support on the downside is near the $1,230 zone. The next major support is near the $1,210 zone. It is close to the 50% Fib retracement level of the recent increase from the $1,162 swing low to $1,276 high.
A downside break below the $1,210 support may perhaps send the price towards the 100 hourly simple moving average or $1,160. If the price fails to stay above the 100 hourly SMA, it could even slide towards the $1,120 level.
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