Buy signals appear on the Bitcoin and ETH 12 hour charts as fear floods the market
Bitcoin and ETH have faced significant declines over the past nine days. While investors are showing signs of fear, one indicator suggests a major rally is about to begin.
The market is scared
Volatility has returned to the crypto market, putting many investors in a state of “fear” for the first time since September.
According to the Crypto Fear & Greed Index, the overnight losses on November 19th cleared the last trace of “greed” from the minds of traders. At the time of writing, the index of 43/100 – which characterizes “fear” – has risen from 34/100 after falling 20 points overnight.
The sharp decline is in stark contrast to the behavior of the past two months, when the index was in the “greedy” zone around the low 70s.
At the same time, Bitcoin fell below $ 60,000, leading to liquidations in long positions of more than $ 600 million in the past four days. This decline has spread to the entire crypto market, causing significant losses. However, many lower capitalization assets avoided the uncertainty.
Several metaverse tokens, including Decentraland’s MANA, Enjin Coin’s ENJ, and Sandbox’s SAND, have fully recovered from the recent pullback and are showing bullish momentum. Meanwhile, Elrond’s EGLD and Avalanches AVAX recently hit all-time highs, Bitcoin Magazine reported.
Although this week attention has shifted from BTC and ETH to lower capitalization assets, a technical indicator showing buy signals for the two major cryptocurrencies suggests that the two could soon begin to catch up with the rest of the market. The uptrend pattern, which predicts a rapid rebound, could keep the bears under pressure.
Current buy signals from Bitcoin and ETH
The TD Sequential indicator has given a buy signal on both the Bitcoin and Ethereum 12-hour charts. The bullish pattern comes after their market valuations have fallen more than 18% since November 10th. Now TD predicts that BTC and ETH could see 1 to 4 bullish candles on the 12-hour chart before the downtrend resumes.
A spike in buying pressure pushing Bitcoin above $ 58,500 could push the price toward the 100-12 hour moving average of $ 60,000. A close of the 12 hour candle above the resistance may extend the rebound towards the 50-12 hour MA at $ 62,300.
Similarly, Ethereum must break the $ 4,300 resistance to advance towards the 50-12h MA at $ 4,500. If this hurdle is overcome, the ETH can rise to $ 4,653.
It’s worth noting that Bitcoin and Ethereum will need to hold above their respective swing lows to avoid further losses. If BTC falls below $ 55,600 and ETH loses $ 3,960 in support, the downtrend could extend, which could cause Bitcoin to slide toward $ 52,000 while Ethereum crash toward $ 3,700.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to crypto briefing