Bitcoin + Ethereum: Technical support will be tested at short notice
The course of the Bitcoin and ether recovers from technical support after two consecutive profit taking under resistance. The trend remains bullish.
Important technical factors of the article:
- The price of Bitcoin continued to drop before the $ 10,000 lead screed, but is responding to short-term support. The technical compression is getting tighter.
- Ethereum remains bullish as long as large support remains at $ 190. The equivalent of USD 10,000 BTC is USD 220 for ETH / USD.
During this long, extended Ascension weekend and on Memorial Day in the USA on Monday, May 25, the trading volume in the financial markets is very low. Professional traders will return for US trading rooms on Monday and even Tuesday. It’s a time to take profits, it’s probably what happened on the website Bitcoin price yesterday.
The tensions, the verbal competition between the United States and China on the subjects of Taiwan, Hong Kong, Covid-19 and trade, led to a low risk aversion, as well as to the stock market in a profit-taking phase.
On the technical side, there are no effects of the last two trading sessions on the market structure. The price of Bitcoin even returned to the contact of a bullish support that appears to have a recovery effect the moment I write these lines.
The graphic above shows the daily Japanese candles at the Bitcoin price. The latter declined under the extreme resistance of the 10K, but appears to be recovering from support at $ 8,900, connecting a chartist uptrend line from the low of $ 3,850 with a key component of the Ichimoku system. , the Kijun-sen.
The graphical backdrop remains the trading range between $ 8,500 and $ 10,000. But the $ 8,900 is an intermediate threshold that can allow an upward recovery for this weekend.
The technical analysis of the second market leader, etheris also stable, a channel between the strong support at $ 190 and the high resistance at $ 220. I still believe that returns on $ 190 are buying opportunities.
Finally, a little nuance: The downside risk lies in splitting support to $ 8,500. This can take the form of a vertical decline leading the market to $ 7,200. In my opinion, this is the minority scenario in terms of probabilities.
consequences Vincent Ganne on Trading View for further analysis on the financial markets. The technical thresholds and the trend indicated above are based on the technical approach “price, dynamics, mood, Ichimoku”. The data comes from Bitstamp and the graphics of TradingView.
This content is offered for information purposes only and does not constitute an investment recommendation. We remind you that theInvesting in crypto assets, including Bitcoin, is extremely risky. Cryptocurrency prices are prone to large and unpredictable price fluctuations.