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Bitcoin, Ethereum Technical Analysis: BTC, ETH Drop as Key Resistance Levels Hold

News Feed - 2022-08-26 10:08:05

Bitcoin, Ethereum Technical Analysis: BTC, ETH Drop as Key Resistance Levels Hold


Bitcoin fell lower on Friday, as the token slipped below a key resistance level during today’s session. Following a mini rally in price this week, bitcoin bears returned to action, as volatility in the market increased. Ethereum was also lower, falling back below $1,700. Bitcoin


Following a mini rally this week, bitcoin (BTC), was back in the red on Friday, as the token slipped below a key resistance point.


The world’s largest cryptocurrency fell to an intraday low of $21,171.79, which is nearly $600 lower than Thursday’s high at $21,744.87.


Today’s decline comes as market sentiment once again shifted to bearish territory, following a breakout attempt at the $21,600 price ceiling. BTC/USD – Daily Chart


Although BTC/USD did marginally climb beyond that point, bulls opted not to maintain earlier positions, choosing to secure gains instead.


This was a signal to bears, who reentered the market, and now look set to send bitcoin closer to a floor at $20,800.


As of writing, there is slight hope that today’s sell-off will ease, and this comes as the 14-day relative strength index (RSI) has hit a support level of 44.80.


Should this hold, then we could see BTC rally during the upcoming weekend. Ethereum


Ethereum (ETH) was also trading lower on Friday, as the token dropped back below $1,700, as sentiment surrounding The Merge event marginally faded.


So far today, ETH/USD has declined to a low of $1,628.17, which is roughly $90 below its high of $1,718.18 on Thursday.


Like with bitcoin, Friday’s move comes as ethereum bulls failed to sustain a breakout of a key price ceiling. ETH/USD – Daily Chart


Looking at the chart, the ceiling was the $1,705 point, however bearish traders now appear to be targeting a support of $1,550.


The 10-day (red) moving average has now extended its downward trend versus its 25-day (blue) counterpart, with the RSI also weakening.


Currently, the index is tracking at 45.58, however it seems to be heading towards a floor at 42.30, which will likely be enough to take ETH back below $1,600.


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How low do you expect ethereum to fall this weekend? Leave your thoughts in the comments below. Eliman Dambell


Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX. Biggest Movers: AAVE, ADA Remain Near 1-Week Highs on Friday MARKET UPDATES | 8 hours ago Biggest Movers: SHIB Bounces From Key Price Floor, Climbing to 1-Week High MARKET UPDATES | 1 day ago


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