Bitcoin (BTC/USD), Ethereum (ETH/USD) Caught Between Key Moving Averages

With the cryptocurrency market recently overrun by sellers, perhaps due to traders reducing risk across speculative asset classes amid surging bond yields, Bitcoin and Ethereum have both faced considerable downward pressure. BTC/USD price action tumbled roughly -20% from its record close while ETH/USD plunged nearly -30% from its all-time high in what initially appeared to be a healthy correction. Bitcoin and Ethereum staged notable rebounds yesterday in attempt to claw back recent losses, but it seems as though crypto bulls are struggling to sustain the bid. Despite increasing private sector adoption of top cryptocurrencies, this may leave BTC/USD and ETH/USD at risk of deeper pullback potential in the short-term.

BTC/USD – BITCOIN PRICE CHART: DAILY TIME FRAME (21 NOV 2020 TO 02 MAR 2021)

Bitcoin Price Chart BTC to USD Technical Forecast

Chart by @RichDvorakFX created using TradingView

Bitcoin volatility over the last two weeks has sent BTC/USD price action swinging within a massive $15,000-range. The biggest cryptocurrency by market cap now looks wedged between two key technical levels underpinned by its 20-day and 50-day moving averages. BTC/USD rejecting the psychologically-significant $50,000-price level could suggest risk remains tilted in favor of the bears.

A breakdown of confluent support around $43,000 might motivate Bitcoin sellers to set their sights on January’s swing high. Below this, the mid-point and 61.8% Fibonacci retracement levels highlighted on the chart above stand out as the next possible layers of defense. On the other hand, maintaining the broader bullish trend and eclipsing the 24 February close could reignite upward momentum and bring $60,000 into focus.

ETH/USD – ETHEREUM PRICE CHART: DAILY TIME FRAME (21 NOV 2020 TO 02 MAR 2021)

Ethereum price chart ETH to USD Technical Forecast

Chart by @RichDvorakFX created using TradingView

Ethereum has been hit harder by the cryptocurrency market selloff relative to its Bitcoin peer. ETH/USD price action was similarly hammered lower to its 50-day moving average, but the rebound off this technical support level looks much less inspiring. This could indicate trader sentiment surrounding the cryptocurrency market remains downtrodden.

1 2
View single page >> |

Disclosure: See the full disclosure for DailyFX here.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.