BTCUSD (Coinbase)
Source: TradingView
As expected, Bitcoin managed to reach and even briefly break above the prior all-time on the back of the first ETF trading on the US stock markets. However, once that occurred, the “sell-the-fact” scenario we’ve warned about a week ago started to unfold and Bitcoin weakened impulsively, currently on track to end the week with losses if current valuations will be maintained.
The first support is located around $60.5k, which is where buyers have already been active during the past two days. We suspect there is scope for more weakness as the month gets to an end and BTC should easily retest the daily 20 EMA. Below that, an acceleration can drive the price towards $53k where the September high is located.
On the bullish front, the price needs to break and hold above $65k so more upside will be unlocked towards the $70k area. For the time being, that does not seem to be the case, given buyers were not able to sustain the breakout even as Bitcoin touched new all-time highs.
ETHUSD (Kraken)
Source: TradingView
In the case of Ether, although the price managed to break above the triangle pattern we’ve talked about last week, that was not enough to generate a new all-time. Based on the Kraken chart, it turns out the valuations peaked right at the May 21st high and then started to weaken, a short-term negative sign, combined with the Bitcoin latest selling.
Moreover, we see divergence on the daily RSI, which is another sign of weakness. Looking ahead, if the price will break back inside the triangle, that will imply the consolidation is not yet complete. It could be an early indication for further weakness towards $3.5k and even the lower area of the structure.
Buyers need to keep ETH above the triangle and show resilience on short-term dips in order to keep the momentum going. At present, all is pointing towards a setback, which means sellers could continue to hold the upper hand next week.
ZECUSD (Bitfinex)
Source: TradingView
Surprisingly, ZCash is among the top-ranking coins for the week based on price gains. Looking at the chart, buyers are attempting a breakout above a range that has been in place since May 2021. If they succeed, that will mean ZEC can head higher towards $250, where the next key resistance area is located.
A resumption of selling activity could trap buyers are these high levels and trigger a corrective move lower during the next few days or weeks. For now, the price action is pointing towards solid bullish strength, as the last 8 consecutive days closed with gains.
Conservative traders should take the daily 200 SMA as a point of reference. Sellers were successful in keeping the price below for an extended period and now that pattern is broken, it is up to buyers to treat the SMA as support. How ZCash performs on a correction towards the $160 area will be key to where this altcoin is headed.
There are no comments at the moment, do you want to add one?
Write a comment