What if the end of the past week led to a new cataclysm for Bitcoin and Ethereum? However, the first two digital currencies had limited damage following the publication of inflation figures in the United States on Friday. But the next day, they were swept away by a new storm. With a more significant bias for ETH, as it has just definitively broken through its support at $1,700, which buyers were desperately clinging to.
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As no catalyst manages to counter the major uncertainties on the financial markets, the bearish movements of Bitcoin and Ethereum continue to progress. And the latest technical analyzes are not sending encouraging technical signals, suggesting that this nightmarish spiral could end. In such a way that sellers very clearly have fate in their hands.
Bitcoin – New Year Lows
At the time of writing this review, Bitcoin has just made new lows for the year by falling below the support of $25,000. And not only is a new weekly black series starting to emerge. But even worse, the downside pressure does not seem determined to run out of steam. And it’s not an RSI slightly in the oversold zone in weekly units that will prevent sellers from driving the point home. Because, unfortunately, everything leans on their side… whether they like it or not.
First of all, the parallel evolution of the 30-week moving average (MM30 weekly) compared to the descending line, only reinforces the Weinstein stage 4. Secondly, the shoulder-head-shoulder (ETE), validated since the week of April 18, sees its final theoretical objective getting closer given the violent drop in BTC prices. And third, breaking away from the $30,000 support causes a detachment of prices below the symbolic level of the bottom of its tidy or horizontal channel (orange rectangle).
After stalling for a week to catch our breath, the Bitcoin price bear market is accelerating again. With the increasingly precise threat of a breakout of the $25,000 support. And, if however this pessimistic scenario were to take place, the beginning of an endless fall. This since BTC last failed below the $46,000 resistance and the MM30 weekly which could push towards the critical and symbolic support of $20,000.
Ethereum – The support of $1700 pulverized
Even though it happened over the weekend, Ethereum’s dip below a major level remains the highlight of the past week. In line with its strong correlation with Bitcoin in lean times, it has just broken the $1700 support. And to do this, he really used the hard way. Following which, it is now the turn of the $1400 support to be endangered. This to the point to consider the symbolic target of $1000 more quickly than expected.
Whether the downward movement is excessive or not, the ETH price bear market is no longer debatable. With unfavorable technical signals that look uncannily similar to those displayed by BTC, like Weinstein’s phase 4 and the break of his tidy. Especially since technical indicators are of no help in the absence of bearish divergences.
From now on and until proven otherwise, the general trend around Ethereum seems set to see other mediums come under threat. Cause and effect, this raises fears of the possibility of seeing prices no longer in four figures, but in three. Which would mean at the same time cancel most of the returns posted during its last bullrun. And, insofar as Bitcoin prices have continued to stall since the week of March 28, the gloomy market context now seems favorable to this scenario that was unthinkable just a few months ago.
BTC and ETH – A new bear market dimension
Without foretelling anything of what will happen over the next few weeks, Bitcoin and Ethereum bear markets have taken on a new dimension graphically. For one thing, their low points are getting deeper and deeper. This removes the imminence of a trend reversal. And on the other hand, the first two cryptocurrencies are struggling to stabilize. And, in the absence of a favorable technical configuration, sellers remain in a position of strength against buyers.
Given that the peak of inflation in the developed countries risks being postponed for a few more months, we will have to expect that the appetite for risk is not there. In which case, the most speculative assets such as cryptocurrencies will no longer be the priority of institutional investors. But on the other hand, bonds and cash are not viable alternatives, because in real terms they would lose money. Hence the possibility of a possible rush to tangible assets proven in inflationary times.
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