Breaking News
Investing Pro 0
Donate to earthquake relief efforts in Turkey and Syria Donate

How Limited Is Current Recovery In Bitcoin, Ethereum?

By Günay Caymaz/Investing.comCryptocurrencyOct 28, 2022 09:32AM ET
www.investing.com/analysis/how-limited-is-current-recovery-in-bitcoin-ethereum-200631652
How Limited Is Current Recovery In Bitcoin, Ethereum?
By Günay Caymaz/Investing.com   |  Oct 28, 2022 09:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
BTC/USD
+0.40%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETH/USD
+2.07%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
  • The two largest cryptocurrencies are trading lower today after a very positive first half of the week
  • ETH managed to break out of its sideways channel, while BTC tested its nearest resistance
  • However, the Fed's rate decision next week remains the most important factor for the crypto market and will likely increase volatility

Bitcoin is nearing its $20,000 support as bears returned yesterday after the cryptocurrency jumped to the $21,000 resistance on Wednesday. Ethereum, on the other hand, hit its resistance at the $1,565 level after finally breaking its sideways channel upward.

Bitcoin 

While Bitcoin saw significant demand earlier in the week, its upward trajectory was halted around $20,600 - $21,100, with an increase in trading volume in favor of the sellers.

BTC/USD Daily Chart
BTC/USD Daily Chart

The daily BTC/USD chart shows that the world's largest cryptocurrency reacted to the 89-day EMA. This suggests that the medium-term exponential moving average has been playing an important role in its bullish movement.

According to the latest situation, the $20,800 level within the resistance area can be followed as the most important obstacle for BTC at the moment.

In the lower zone, the $20,140 level has become an important support. If BTC sees a close above this value, investors may perceive the ongoing retracement since yesterday as a limited movement and move back to the buyer side. Thus, we can see that BTC may move to break the $20,800 resistance again in weekend trading.

On the other hand, an eventual loss of the $20,140 support, followed by hourly closes below the $20,000 psychological level, could also increase panic selling, dissipating this week's positive mood.

If this possibility materializes, BTC can be expected to return to the $18,500 - $19,500 area.

Aside from the technical scenario, traders should mind that the U.S. Fed will announce interest rates in the first week of November, likely increasing volatility before and after the meeting.

While the U.S. central bank is expected to raise interest rates by 75 basis points, the market would very much welcome an interest rate hike below this rate, triggering crypto prices upwards.

However, if the decision comes in line with or above expectations, crypto assets can be expected to dive below $19,500 according to past movements in the volatility that will occur.

Ethereum

Ethereum has outperformed Bitcoin this week, gaining around 10% during the period.

After breaking the resistance of $1,550, Ethereum saw a rapid rise and reached $1,590. Only to reverse lower back to the $1,500 area.

ETH/USD Daily Chart
ETH/USD Daily Chart

The selling started at the Fib 0.618 correction value, based on ETH's September retracement. This movement gives the impression that the recovery remains limited. However, looking at the short-term price movements, if Ethereum can close the day above $1,500 at Fib 0.5, another upward attack may come in weekend trading.

Accordingly, the resistance of $1,565 should come into play again. In the continuation of the upward movement, the next resistance price will be followed as $1,660.

On the other hand, if the selling that has been going on since yesterday continues predominantly today, the $1,470 - $1,430 - $1,380 levels should work as the closest support levels below $1,500.

As a result, the $1,500 price in the Ethereum market remains an important support. Movements around this price can be decisive for the cryptocurrency's direction. In addition, in the volatile price movement that may occur in the coming days, it will be crucial for ETH to maintain the range of $1,350 - $1,400 not to increase losses further.

Disclosure: The author currently does not own any of the securities mentioned in this article.

 
How Limited Is Current Recovery In Bitcoin, Ethereum?
 

Related Articles

How Limited Is Current Recovery In Bitcoin, Ethereum?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Sonye Checkwu
Sonye Checkwu Nov 09, 2022 9:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sonye Henry
Celli ferous
Celli ferous Nov 04, 2022 5:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
At this point, Ethereum is over powering BTC which has shocked quite a few newbies who have just entered the market. But, these two are amongst the largest coins so BTC will recover quite soon. Fingers crossed.
willen alesli
willen alesli Nov 04, 2022 5:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Don't worry, it will pick up soon! BTC will always be one of the largest coins. Just be patient.
Sal Tecce
Sal Tecce Oct 28, 2022 10:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
why is bitcoin mimicking the stock market. just an observation
Paul Lester
Paul Lester Oct 28, 2022 10:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Because like anything else , its a speculative asset, like gold
dafitstock trader
dafitstock trader Oct 28, 2022 10:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
My understanding is that institutions are now buying crypto and they are treating crytpo as they would stock. Meaning, when they rotate money out of equities they also rotate money out of crypto and vice versa.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email