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Market Review: BTC, ETH markets bounce after a record plunge last week

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The cryptocurrency market shows a steady rise after the big sell-off last week after many indicators turned bearish, but are we out of the rough patch yet?

Last week, after the price closed below the 20MA (a popular indicator used by traders to assess the price momentum), there was a huge sell-off which saw BTC prices fall by almost 40% in a single day, inciting panic in the market.

A lot of external factors also seem to have played a role in the drop, especially the ban on cryptocurrency mining announced by the Chinese government.

However, it looks like the market now seems to be recovering slowly as the China-stricken fear, uncertainty, dismissal, gets addressed by the broader crypto community.

Historically there have never been back-to-back big weekly corrections in the crypto market, and analysts expect a steady week ahead.

So what’s next for BTC? 

BTC closed yesterday’s weekly above the $33,000 support which indicates that the following week should be steady. However, to get back to the previous bullish momentum, the price needs to shift upwards of $48,000 with volume and buyer interest.

Market Review: BTC, ETH markets bounce after a record plunge last week
Image: BTC/USD via TradingView.

Lack of buyer interest has been an issue at the current prices but with steady price, action volume can also grow over the next few days.

The next resistance is at $38,636 and the price needs to close above that resistance in order to continue this positive rally, the following week should be interesting regardless.

The Relative Strength Index (a popular indicator used by traders to assess the price momentum) continues to be in the oversold position for which is a good indicator of buyer interest.

Historically, after a big drop, the BTC price action becomes very volatile and erratic price action ensues as a result (as market participants remain unsure of plotting their next moves).

ETH rides down

ETH also had a massive drop last week along with BTC, but current price action displays a steady recovery. Crucial price levels held well for ETH and the price showed a lot of buyer interest in the sub $2,000 levels.

Market Review: BTC, ETH markets bounce after a record plunge last week
Image: ETH/USD via TradingView.

ETH price dipped below $1,900 for the first time since April 2021, but the buyback or buyers interest was substantial in that area and it quickly jumped back up above $2,000. Today, ETH prices saw an upwards bounce as it is up ~26% already.

The next target for the ETH price would be the daily resistance at $2,508. If ETH manages to close above that price during the week we can expect some good gains in the near future for ETH.

But similar to BTC, ETH needs to take over major resistance levels to get back to its previous upmarket trend.

The post Market Review: BTC, ETH markets bounce after a record plunge last week appeared first on CryptoSlate.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
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