Good morning. The downward trending resistance line of $BTC was being tested throughout the day yesterday. While the 30K support area is holding for now, it looks considerably anaemic. The next levels of support will be at the 30K bottom of the current zone. From a technical perspective, we see even weaker support at the 27K (not tested in the run up in January). It’s more likely that $BTC will receive more support at 24K as prices consolidated around this range in December last year — bear in mind this is 20% below the current levels. With the current 200w MA, the possible worst-case scenario will be at around 14K.
Though the validity of this hypothesis is yet to be tested, it’s an interesting trend to note nonetheless. If we look at $ETH’s log chart, the price is testing an upward trending support line in place since the beginning of the bull run. $ETH is still trading in a downward trending channel, and it is currently right in the middle of it. Should it fail, the key resistance levels will be at 2100 – 2150, and 2350 – 2400.
Key support levels of $ETH
- 1750 – 1850
- 1550 – 1600
- 1400 – 1450
It’s worth noting that if the channel continues into August, we cannot rule out the possibility of $ETH going down to 1000. When we look at ETH/BTC pairing, we expect $BTC to outperform $ETH in the next few days. This means both will improve more to the upside and drop less to the downside.
Learn more from today’s Trader View video.
More news that caught our eye:
- Bitcoin heads toward lowest level in 2021 as crypto’s slide continues with stock-market rout
- ARK Invest buys another $54M in BTC-adjacent Square stock
- The narrowing crypto arbitrage gap is a ‘passing phase’
OSL Trader View is contributed by Emilia Lee, Ethan Fu & Stefan von Haenisch.
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