What is Christmas this year for Bitcoin and ETH? – Bitcoin magazine
The prices for crypto currencies continue to fluctuate, there are only 2 weeks left until the end of 2021. Bitcoin and ETH have fallen to their lowest values in the last few months.
Therefore, speculators are now looking for opportunities in the coming weeks. The article analyzes the technical indicators of both markets to get a more complete picture of what could happen this Christmas.
Bitcoin price analysis
The world’s largest cryptocurrency continued to drop below $ 50,000 on Monday, with BTC reaching an intraday low of $ 46,526 on Tuesday, and also its lowest level since October 1.
The recent price drop, which began on November 10th, has resulted in BTC falling over $ 20,000 in the past few weeks. The price now appears to be oversold in what some long-term bitcoiners see as an opportunity to “buy the dip”.
On the daily chart, BTC hovered just below $ 47,000 at times, which served as a support. However, the price has rallied above $ 48,484 by press time. The 14-day RSI also shows the market size is trading at 30, which previously signaled relative market weakness.
Coupled with reaching a bottom, this will often attract bulls to predict a reversal, but a closer look reveals that this is, in fact, a bull trap.
BTC Daily Price Chart | Source: Tradingview
This is because the moving averages (MAs) momentum still looks bearish despite some previous overlap.
There are 3 SMAs (simple moving averages) on this chart: 10-days (red), 25-days (blue) and 50-days (green). The initial bearish crossover signaled a sell-off as the 10-day line moved below the 25-day line. Both then moved below the 50-day line, which is usually a sign that the downward pressure is being maintained.
Even so, the most recent crossover appears to be still in its infancy, and if it continues to mature, BTC price could follow the current descending triangle channel to a more long-term floor of $ 44,000.
ETH price analysis
ETH has fallen more than $ 1,000 since early November after hitting an all-time high of $ 4,836. Similar to BTC, the price slipped and is now in the red for 5 weeks in a row.
Looking at the weekly chart below, it can be seen that the price is working above the $ 3,759 support while the RSI is consolidating at 52, which means the price is neither overbought nor oversold.
Weekly ETH Price Chart | Source: Tradingview
As for the bears, many expect the RSI to break below the current floor of 52 and trigger sellers, potentially pushing the price to the lower support at $ 2,830.
On the flip side, the bulls are watching the purchasing power last seen as the market trades at current prices and expect a reversal of resistance at $ 4,670.
You can see the coin prices here.
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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 FXStreet