- It faced selling pressure after trying to break the $69,000 level, falling to $59,000, and losing momentum.
- Ethereum outperformed, targeting $4,000 despite resistance at $3,975.
- Both cryptocurrencies are facing critical resistance and potential profit taking due to overbought conditions.
- Invest like a big box for less than $9 a month with AI-powered ProPicks stock picker. Learn more here>>>
Bitcoin started the first half of this week with positive momentum, but faced rapid selling pressure as it attempted to break the previous record level of $69,000.
The sell-off pushed the digital currency back to the $59,000 range. Although this did not cause a trend change, it did cause a loss of momentum in the digital currency’s upward trajectory in the medium term.
In this context, Ethereum recovered better than Bitcoin after this week’s decline and returned to its upward trend and continued its movement towards the $4,000 range.
Daily chart insights
Bitcoin saw a sharp reversal after its recovery early last week, but managed to maintain its bullish momentum as major investors saw the week’s lows as a buying opportunity. After the volatility that the digital currency witnessed at the beginning of the week, the digital currency witnessed a rise in the trading area above $65,000.
When we look at Bitcoin’s partial rebound in January, the resistance at the $69,000 level against the trend that has been ongoing since the start of 2024 this week has been the focus. This point corresponds to Fibonacci 3,618 according to the recent retracement, indicating a meaningful reaction according to Fibonacci levels.
From here, we see that the first resistance for Bitcoin is located at the $68,975 intermediate level. If this price is breached in the coming days with a daily close or hourly purchases, the digital currency may reach an all-time high in the $74,000 range, which corresponds to the 4,236 Fibonacci level.
On the daily chart, we note that the Stochastic RSI also gave a correction signal with a loss of momentum from the sideways trend in the second half of last week. For the assumption that a correction occurred quickly in Tuesday’s decline to be true, it is very important for Bitcoin to climb to the $69,000 range.
If this rise occurs, we will see that the Stochastic RSI will also rise again and give a bullish signal.
Hourly chart insights
The upward channel movement we are observing on the hourly chart, which is a shorter-term perspective, also indicates similar price targets for Bitcoin.
The trading range narrowed after the cryptocurrency’s volatility at the beginning of the week, while the cryptocurrency finally encountered resistance at the mid-line of a short-term ascending channel. Sell-offs continued from this resistance, which corresponds to the $67,600 average, and attempts to find support in the lower band of the channel continued over the past 48 hours.
This forecast indicates an ascending triangle with price pressure that could take Bitcoin to the $70,000 region, coinciding with the middle line of the channel.
We could then see an acceleration towards the upper band of the channel, depending on the buying volume within the channel, which has been followed since February 28th. This would be in line with the $74,000 area, which we are following as a target on the daily chart.
In the lower area, some support points stand out close to each other.
First, the lower band of the channel, which corresponds to approximately $67,000, stands as the closest support, while an hourly close below this price level could cause a loss of momentum on the upside. Then, the 8-day EMA, which has been acting as a dynamic support since February, may play the role of second support at the $64,000 intermediate level.
If this support is lost in the event of a potential pullback, we may see a test of the trend line up to the $59,000-$60,500 range.
Can Ethereum break through the $4,000 range?
Ethereum first broke its medium-term ascending channel to the upside in February. Then, in the shorter term, Ethereum accelerated its short-term rise by moving above the channel in which it continued to increase its momentum. Ethereum Haftalık Grafik
Currently, the world’s second largest cryptocurrency is trying to test the resistance at the $3,975 level before $4,000. This price level corresponds to the 0.786 Fibonacci level according to the last high and low price, which represents a critical point.
If Ethereum can achieve a weekly close in the $4,000 area above this value in the coming days, the next move will likely be towards the record level of $4,800. However, there may be fatigue on the part of buyers of the digital currency, which has risen sharply over the past five weeks. This represents the biggest obstacle to it continuing in the $4,000 range.
While the Stochastic Relative Strength Index, which has risen above the 80 level on the weekly chart, reflects overbought conditions, profit-taking that may occur if the resistance level is not broken could cause the digital currency to fall towards the $3,300-$3,500 levels.
Support at this point will be a catalyst for the trend to move stronger. The positive outlook for the Ethereum network and increasing trading volume are maintaining demand for the digital currency. However, it should not be ignored that some earnings selling may come, especially with the first prediction fulfilled after Duncon’s update.
If we look at Ethereum on the hourly chart; The upper band of the channel represents resistance at $3,975-$4,050, in line with the daily forecast. The closest support is the middle band of the channel, corresponding to the $3,800 level. The $3,700 level can be followed as a second intermediate support corresponding to the lower line of the ascending channel in the hourly chart.
***
InvestingPro enables investors to make informed decisions by providing comprehensive analysis of undervalued stocks with the potential for significant market upside.
Subscribe here for as little as $9 a month and never miss a bull market again!
Evacuation responsibilaty: This article is written for informational purposes only; It does not constitute a solicitation, offer, investment advice or recommendation, and is not intended to induce the purchase of assets in any way. I would like to remind you that any type of asset is evaluated from multiple points of view and entails great risk, therefore, any investment decision and the risks associated with it remain with the investor..
2024-03-10 11:42:00
#important #levels #Bitcoin #peak…and #price #Ethereum #steps #thousand #dollars #Investing.com
