Today’s edition on Blocverse Market Analysis:
Since reaching $24,255 on February 2, Bitcoin (BTC) has been gradually correcting. This indicates that short-term traders are taking profits.
As the price approaches the strong support zone between $22,800 and $22,292, buyers are expected to defend it with all their might.
Chart showing performance of BTC/USDT(on a 4-hour Time Frame). Source: Trading View
Bulls have the advantage when the relative strength index (RSI) is in positive territory. If the price rises from the support zone, the bulls will try once more to propel the BTC/USDT pair to $25,000. This level should serve as a formidable resistance.
On the downside, a break below the support zone may trigger several stop losses, potentially triggering a deeper pullback. If this support is also broken, the pair could fall to $21,480.
Ether(ETH) has been trading near the $1,680 resistance level for the past few days. A tight consolidation near an overhead resistance usually resolves to the upside.
Chart showing performance of ETH/USDT(on a Daily Time Frame). Source: Trading View
While the price is above the 50 and 200 moving averages, the bearish divergence on the RSI suggests that the bulls may be losing their grip. Bulls must propel and sustain the price above $1,680 to assert their dominance.
If they do, the ETH/USDT pair could rise to $1,800. This level may act as resistance again, but if bulls do not allow the price to fall below $1,680, the rally could extend to $2,000.
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⚠️This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their research before making a decision.