- The cryptocurrency market is still heavy and biased towards the downside.
- Ethereum/ Bitcoin continues to slide lower.
After a slow start to the week, the cryptocurrency market is now lower. Bears seem back in control of price movement. Although today's expiry of the quarterly Bitcoin and Ethereum options and futures expiry might be skewing the price action, the overall market tone is still heavy and the charts suggest lower prices.
After Friday's breakout of the short-term bullchannel, BTC/ USD quickly lost $10,000 and printed a multi-month low of $28,843. However, the pullback was slow with recent highs of up to $36,500 acting as short-term resistance. BTC will need to confirm a break above this level in order to move up. However, it is unlikely that this is possible at the moment. To prevent more heavy losses, a support zone between $30k- $28k must be maintained.
The fall of Ethereum continues, with lower highs and lower lowest prices dominating the price action since June 1. CCI indicates that ETH is oversold. The 200-day simple moving mean is being tested. If broken, this could be a negative signal. This Tuesday's low was a bounce off the May 23rd level. A rebound sent Ethereum back up to $3,000 and then sold off. This chart setup suggests that it may not happen again. Especially since all three simple moving averages are in line and point lower.
The spread Ethereum/Bitcoin continues to decline and is currently testing a multiweek high. The 460 is the next level of support. This could be due to a previous high or a cluster trades that leads to a secondary rally higher.
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Your views on Bitcoin (BTC) and Ethereum (ETH). Are you bullish or bearish? We welcome your feedback via the contact form at the bottom of the article or via Twitter @nickcawley1.