Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Cryptos: Recent Rally Looks Exhausted - Unless Bitcoin Breaks This Resistance

Published 08/02/2022, 03:17 PM
Updated 07/09/2023, 06:31 AM

Since this market seems impossible to hold down for more than a few moments, let’s direct our attention to the animal spirits of crypto to see what they’re saying.

We begin with Ethereum:

ETH Price Chart

What I see in the chart above, in chronological order, is:

  1. A market which broke its support at $1706 and plunged quickly;
  2. Stabilized for many, many weeks and formed a bullish base (green tint);
  3. Completed the bullish base and ascended toward its $1706 resistance;
  4. Briefly got a little above resistance (red rectangle);
  5. Has slipped back down below

This movement has informed Bitcoin’s price action, shown below, inasmuch as Bitcoin got “inspired” by ETH and broke above its own bullish pattern—but only for about 20 seconds (arrow). It has now, as with ETH, slipped below its resistance level once more.

BTC Price Chart

Unless BTC blasts past this resistance line, I think it shows the equity bounce is exhausted, and we’re all just marking time, waiting for stocks to smell the coffee.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.