When the demand for BTC increased in the weekend’s trading, its price rose to $31,460. As the new week begins with sales again, BTC has lost 5 percent of its value since opening and is back in the 29,000 range.
On the other hand, the largest altcoin – Ethereum (ETH) rose nearly 7% at the end of the week, reaching $2,145. Then the sell-off, which began during Asian trading hours, caused the price to drop 6.5% to $2,000.
It appears that buying after hitting the lows on May 12th had the effect of causing a short-term bullish correction compared to the current situation. Because continued sales since today’s opening show that the weekend’s gains have fizzled out.
Looking at some other important details of Bitcoin and Ethereum it appears that the price of Bitcoin closed for the seventh consecutive week and Ethereum for the sixth week in negative territory. Thus, the recent downtrend caused an unprecedented bearish momentum for the two cryptocurrencies.
Bitcoin (BTC) saw a buying reaction at $26,700 last week. The mid-level of $31,500 was a critical resistance for the continuation of the recovery in this movement. The buying volume that was witnessed at the end of the week was not enough to break this resistance.
With sales continuing since the opening of the week until noon, Bitcoin is currently testing the average support of $29,600. In our analysis last week, we identified the $27,000-$31,500 range of the 2022 uptrend as an important Fibonacci retracement area. The last week of Bitcoin price action shows that the coin is currently consolidating in this area.
The decisive move to recovery continues as today’s close was above $31,500, while the 1.414 Fibonacci value and $29,600 range remain as an intermediate support level for BTC/USD. An hourly close below this level could lead to a retest of the $27,000 level for Bitcoin, which is the bottom line of the support zone. Losing the $27,000 level in price action this week could trigger a second wave of selling and create new momentum towards below $20,000.
On the other hand, if Bitcoin buyers can defend the $30,000 range, the target levels for the rest of the week after the $31,500 resistance; It is $35,100 – 37,850 – 40,000 dollars.
Ethereum managed to climb to $2,160 to recover in the second half of last week. Then today’s massive sales caused the cryptocurrency to drop again.
According to the daily chart of Ethereum, the $2,200 range is expected to recover first to compensate for the recent downtrend. After that, the 0.318 Fibonacci level at $2,475 was another important resistance level to be broken.
Ethereum, which is currently trying to hold onto the bearish territory, will revert back to the downtrend, which has been going on since November 2021 if it sees a daily close below $2,000. A fresh sell-off below this psychological level could break the $1,800 low last week and create a fresh bottom in the $1,600 range.