Bitcoin and Ethereum Price Analysis: Crucial Resistance Level Rejected

Key highlights:

  • Bitcoin bulls have been rejected from an important resistance level
  • The crypto market is slowly turning bearish in the short-term
  • ETH remains far weaker than Bitcoin
Bitcoin price: $6,550
Key BTC resistance levels: $6,900, $6,957, $7,000
Key BTC support levels: $6,335, $6,000, $5,990

*Price at the time of writing

Bitcoin (BTC)

Bitcoin has been outperforming the traditional stock market for the past week now and has remained relatively strong within the context of the crypto market as it has gained some market dominance as well. The digital asset is currently trading above $6,000 but below $7,000, as it has been unable to break above this level.

The daily chart remains in an uptrend and the last higher low was set at $5,688, which means the bulls still have a lot of space to work with. Bitcoin has experienced several positive signs in the past few days like the MACD turning bullish for the first time in more than a month and the change in daily and 4-hour trends.

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Bitcoin price short-term prediction: Neutral/Bearish

Like we pointed out in our last BTC analysis, the bulls were facing a lot of resistance between the $6,900 and $7,042 area. The bears have now proven that this is in fact a heavy resistance area, as the price of Bitcoin was rejected yet again from $6,957. This has basically created a double top formation, although the current candlestick hasn’t closed yet.

The bears have seen significant continuation after the rejection at $6,957 as the value of Bitcoin declined by 7% in less than 4 hours. The 4-hour uptrend is not lost yet and the bulls could still turn the bearish momentum around. The MACD is on the verge of a bearish cross but maintains the daily bullish cross. The daily RSI remains pretty low at 45 points and the bulls are looking for support at the $6,327 area, the 12-period EMA.

Ethereum price: $134
Key ETH resistance levels: $138.47, $142.33, $152.5, $160.8 
Key ETH support levels: $133.04, $119.5, $116.74

Ethereum (ETH)

Ethereum has been weaker than Bitcoin and the bulls have been unable to break and close above the daily 12-period EMA. They have been rejected 3 times now, but were still able to see a bullish MACD cross two days ago. 

It seems that Ethereum is forming a daily ascending wedge that is not fully confirmed yet. The trading volume has also significantly declined over the past week. Similarly, the volatility of ETH has also declined in the past two days, which could indicate a bigger move is coming soon. Additionally, it seems that the active addresses of Ethereum have jumped to a 9-month high after the overall market crash back in March 12. 

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Ethereum price short-term prediction: Bearish/Neutral

EH Daily Chart

Ethereum is most likely going to follow the steps of Bitcoin, which has currently set a double top on the daily chart. Ethereum hasn’t been able to close above the daily 12-period EMA even though the MACD has turned bullish. The bulls are still in control as ETH is still in a daily uptrend but it seems to have formed a lower high compared to $152.55. 

The most likely scenario for Ethereum now seems to be a daily equilibrium pattern if the bulls can hold the support at $119.5. An equilibrium pattern doesn’t favor anyone and it’s not necessarily bearish, but it’s certainly not what the bulls wanted. The coronavirus outbreak situation is not improving just yet and the crypto market, although it’s performing better now, could still suffer further downside action as a result.

The daily RSI is still pretty low at 40 points but the bears are looking to shift the momentum back in their favor, especially if ETH cannot break above the daily 12-period EMA soon.