BTC and ETH are facing stiff resistance and a possible correction over the next few days
A prominent analyst says Bitcoin (BTC) and Ethereum (ETH) are showing bullish moves but are currently facing key resistance levels.
In the latest edition of the Technical Roundup, Cred said that bitcoin is likely to fall back into the $38,000-$40,000 region as it turns previous support into resistance.
BTC is approaching multi-timeframe resistance in the mid-$40,000 region. Just as there is a lot of converging support in the $30,000 area, there is a lot of stacking resistance in the mid-$40,000 area.
Specifically, $46,000 to $47,000 is the midpoint of the monthly range. It is also the previous breakout point. Finally, the moving averages, including the 21-week MA, 50-week MA, and 200-day MA, are all around $50,000.
BTC/USD weekly chart | The source: Technical Summary
With ETH retesting the $3,050 – $3,310 zone, Cred also offers potential price targets at the moment the cryptocurrency breaks out of this zone or turns down. At the time of writing, Ethereum is trading at $3,066.
“Above $3,050 to $3,310 there is a clear target of $4,000.
If $3,050 – $3,310 rejects the price, a reasonable level for ETH to retest is $2,700 on the daily timeframe, but the trend would need to be very strong for such a pullback to sustain. If not, I will aim for the untried $1,900 low.”
Weekly ETH/USD chart | The source: Technical Summary
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.
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