The war drums around Ukraine, with Russia’s potential invasion in it, hit traditional and alternative markets with another correction blow. This development showed how interconnected and correlated the financial system has been and how much the impact of institutional investing has been in the crypto markets.
A similar sell-off became evident in the Bitcoin market as the price dropped at $36,500, shaping the path for more correction in the upcoming days. Many analysts wrote that the next support level at $35,000 would be inevitable to come in the market and we should prepare for another bearish wave.
Fortunately, this didn’t happen and the Bitcoin market reacted instantly, bringing the price up to $38,000. This reaction showed that the correction derived from an external factor and not from some actions directly related to the crypto market. We can acknowledge that every aspect is important in the game but we should filter what and how can affect the Bitcoin price formation in the long-term run.
The moving averages remained at bearish positioning, proving that nothing has changed over the last few days. The trading volumes remained at normal levels, without exaggerations over the past period. Those signals indicate that the market will probably take a few days’ rest before returning to normal levels.
In the day-trading window of this Bitcoin Price Analysis, there was no signal for the last 5 days. The moving averages have been positioned on the bearish side.
A turn towards the bullish side might be evident and produce a bullish signal. If this happened, it will be around $39,000 and deliver a potential growth of 2 – 3 % in the following hours. This means that the price could jump to $40,000 at least for a day, claiming a minor profitable position for day-traders.
After two local high levels at $3,300 and $3,200, the Ethereum market corrected below the $3,000 line, passing the market in a similar position with the Bitcoin’s one. At this moment, Ethereum hit another support level, which is higher than the major one at $2,500.
Rebounding at $2,600 remains important for the current situation as it shows more depth in this price level, with more expectations for the short-term future. The next goal, for now, remains the recovery at $3,000, as the price took a first rebound at $2,680.
If the price makes another local high level at $3,000, without being able to break it, we could expect another bearish turn as there is not enough momentum in the market to pass into the next stage.
The moving averages have crossed each other, sustaining a bearish feeling for the last period that will probably continue for the upcoming period.
The trading volumes remained at normal levels, showing that the long-term investors were not panicked and the sell-off happened due to the momentum crisis and not according to fundamental issues.
In the short-term period of this Ethereum Price Analysis, the locally high levels have made two edges. This pattern often indicates that there would be another one, probably a little bit lower than the previous two.
If the third local high level stays around $3,000, a bearish trend would have been established and another negative change would be possible in the aftermath of this position. If the third local high level stays around $3,200, we might observe an inverse “Head & Shoulders” pattern, which could lead to a bullish breakthrough.
The bullish breakthrough could lead the market up to $4,000 and establish new positions around it.
In the day-trading window, we can observe the same situation that has become evident in the Bitcoin market also.
The moving averages strategy seems to be effective and clear in the signal production. The last three signals have produced at least an 8 % margin on 2 days. This means that multiple trades could happen over a week and produce enough profit for day-traders.
Of course, this pattern could be more effective in a ranging market as there are a lot of opportunities for ups and downs. On the other hand, a clear bullish or bearish market could lead the market with no day signals as there is not enough traction towards both sides.
This pattern might be a gold mine for some traders.
MACD (Moving Average Convergence Divergence) index has plummeted in the “red” zone, showing that there is not enough momentum at this time to make the price jump higher. The changes in the momentum could mark a part of the signal for the market change and should be examined along with other aspects.
The RSI index moved between values 40 and 45, indicating that the market has taken a bearish blow for now and it won’t be able to move for a little time in the future. Stable moves are the most probable scenario and we expect a similar trend to evolve.
Bitcoin and the overall crypto market took a major hit under the invasion in Ukraine from Russia. The prices plummeted but the market reacted immediately, not letting the price slip until the major support zones.
This was evident both in Bitcoin (where the price stopped at $36,500 and rebounded back to $38,000) and in Ethereum (where the price stopped at $2,500 and rebounded back to $2,700). In the next few days, the market will become more clear and start to deploy the next trend in the charts.
Read our previous Bitcoin Price Analysises here!
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