The pricing arrangements of Bitcoin and Ethereum, particularly BTC/USD and ETH/USD, are notably affected
Bitcoin: Still Facing Challenges
Last week, Bitcoin faced a setback when the Securities and Exchange Commission (SEC) decided to delay making a decision on Bitcoin ETF applications. This news has dampened the optimism surrounding Bitcoin’s future, and it is evident in the technical charts of BTC/USD.
Key Support Test
BTC/USD is currently testing a crucial support level at the June low of 24750. This support is significant because if it breaks below this level, it would disrupt the pattern of higher highs and higher lows that Bitcoin has been experiencing since late 2022. Moreover, a break below this support would trigger a double top pattern, indicating a potential further decline towards the March low of 19550.
Resistance from Ichimoku Cloud
Bitcoin’s recent weakness can also be attributed to its inability to surpass the upper edge of the Ichimoku cloud on the weekly charts. This resistance level aligns with a slightly upward-sloping trendline from 2021 and the 89-week moving average.
Ethereum: Facing Vulnerability
Ethereum Struggling to Hold Support
Ethereum is currently facing challenges in maintaining its position above a crucial support level at the June low of 1620. This support is essential for Ethereum’s broader recovery since the end of 2022. If Ethereum breaks below this support, it would confirm that the bullish momentum has faded. In such a scenario, the next support levels to watch would be the March low of 1370 and the major support at the 2022 low of 880.
Weakness Reflected in Charts: Ethereum
Similar to Bitcoin, ETH/USD has been influenced by the bearish Ichimoku cloud cover on the weekly charts. In recent months, Ethereum has struggled to break above the upper edge of the cloud, which aligns with a slightly upward-sloping trendline from 2021. The fact that Ethereum has not been able to rise as much as Bitcoin in comparison to the cloud cover reflects its relative weakness.
In conclusion, both Bitcoin and Ethereum are currently facing challenges in their price movements. Bitcoin’s inability to break key resistance levels and Ethereum’s struggle to hold crucial support levels indicate that the road ahead may still be difficult for these cryptocurrencies.