Bitcoin (BTC), Ethereum (ETH) – Down But Not Yet Out

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Bitcoin (BTC), Ethereum (ETH) – Down But Not Yet Out

Last weekend’s sharp sell-off in the cryptocurrency, during the low-liquidity Asian open, sent prices tumbling to multi-week lows before a partial rebound steadied prices. Then earlier this week, Bitcoin closed the gap on the daily chart, made between the CME close on Friday and the Asian open, around $51,750. With this gap filled, Bitcoin and the rest of the market eased lower but that move is currently lacking conviction and suggests a period of sideways price action with the potential to push slowly higher. There is a reasonable cluster of recent lows just above the 50% Fibonacci retracement level at $47k which needs to hold to enable BTC to re-test the important $53k level.

The daily Ethereum chart currently looks a little more supportive than the Bitcoin chart with re-tests of the $4k level and just under seeing buyers return to stabilize the market and push it higher. Ethereum has outperformed Bitcoin over the recent weeks, but this move is currently on hold. While recent ETH support has been held, a further re-test should not be counted out and the reaction to this next test may well steer price action in the short term.

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