In Bitcoin (BTC), we have seen another sharp and sudden dip over the past 24 hours that was very quickly bought back up by traders pressing a continuation of the recent trending action. The real question now is this: what does this say about the sustainability of the trend now in place over the past three weeks?
As we take a close look today at Bitcoin (BTC) and Ethereum (ETH), we want to analyze this recent dip and how it appears in the context of the past week of action, which includes another similar dip and recovery.
- High: $8216
- Low: $7640
- Major Resistance Level: $8,500
- Hourly MACD: Continued Accumulation
As we have noted, Bitcoin (BTC) has been out in front of the cryptocurrency complex during this recent bout of strength. There should be little doubt that this is still the leader in the space.
As we watch this recent upward trend evolve and mature, we have seen several sharp shakeouts that have, in each case, offering traders a new opportunity to join the trend on the long side in BTC.
However, in each recent case, the reaction leg has fallen short of testing the all-important 200-day simple moving average that hovers just above at slightly less than $8500.
At this point, it would appear that a decisive break above that level in coming days may well unleash a brand new test of the $10,000 level in Bitcoin (BTC).
- High: $471
- Low: $427
- Major Resistance Level: $500
- Hourly MACD: Mild Oversold Reading
One of the elements that we have been tracking closely in the chart for Ethereum (ETH) is how it responds to tests of a trend line that captures the hourly chart lows put in place during the swings and pivots that have appeared on the chart since late June.
Over the past 24 hours, we may well be seeing that perspective put to the test with a break of that trendline.
This will call into question whether Ethereum (ETH) is able to stay with Bitcoin (BTC) and many of the other stronger coins during this bounce, or if we are instead to see a divergence in the space with a more striking sense of lagging action for Ethereum (ETH) and its associated compadres.
At this point, it’s far too early to say, particularly as this breach of the slope that defines the pivot lows achieved over the past month may well be a shakeout or a head fake to the downside before a more decisive move higher to test key resistance at the $500 level.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Charts courtesy of tradingview.com