Will it hurt more now? Bitcoin and Ethereum charts show mixed signals: analysis

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Crypto Market has launched a week’s break in the Red Sea after a massive Bitcoin sale from one whale-triggered cascade liquidation.

Studying trends and carefully reviewing charts reminds us that you can only take you in a volatile world of crypto assets. Sometimes, unexpected events (black swans, or big red whale) can instantly flip the script.

Just three days ago, Federal Reserve Chair Jerome Powell spiked risk assets on Friday after opening the door to rate reduction during his speech at Jackson Hole. Since then, Crypto’s total market capitalization has plummeted to $3.83 trillion, down 2.4% in 24 hours.

The $2.7 billion dump that caused these liquidation over the weekend had a huge impact, with the Bitcoin chart showing signs of weakness for a long time. Interestingly, Ethereum, the second largest crypto asset in the market, appears to be weathering the storm.

Bitcoin (BTC) Price: Beware of trend weakness signals

This massive Bitcoin sale over the weekend pushed BTC down into a major support zone of nearly $113,000, forcing leveraged positions to close over $846 million.

Bitcoin opened the day at $113,491, but soon fell to a low of $110,584 before settling down at $112,429. Today it fell by 0.92%, down more than 2% over the past 24 hours. The flagship cryptocurrency was able to temporarily test the psychologically significant $110,000 support level and bounce back before triggering a vending from an algorithmic trader.

Bitcoin price data. Image: TradingView

However, there is no other way to slice this. Technical photos reveal weakness.

Bitcoin’s ADX, or average directional index, is at weak 16, well below the 25 threshold to check the strength of the trend. ADX measures trend intensity regardless of direction on a scale from 0 to 100. This reading shows traders that they are unsure of Bitcoin’s current price action.

If ADX measurements remain below 20, the market usually enters a uninterrupted, undirected phase that irritates both bulls and bears, making it easier for episodes of FOMO and FUD to trigger a major move.

A relative strength index (RSI) of 42.48 was immersed in bearish territory. The RSI measures momentum on a scale of 0-100. Measurements below 50 indicate that sales pressure exceeds purchase rights. At 42 years old, Bitcoin is approaching an oversold state (below 30). This usually indicates that short-term traders may start looking for opportunities to bounce, but catching a fallen knife is a dangerous activity.

The squeeze momentum indicator shows an “on” status, indicating that volatile compression is being constructed. Combined with weak ADX, this usually suggests that traders need to be prepared for breakouts of key directions. However, current price action suggests that it could be downward.

But the Bulls may find comfort in their exponential moving average. EMA provides price support and resistance views based on the average price of assets over a set period. And for Bitcoin, EMA photos remain a bullish long term.

Bitcoin’s current prices are still trading above the 200-day average (the green zone on the chart above), but the gap is slightly narrower, indicating that the Bulls are pushing the brakes. This is important as Day and Swing Traders often use these EMAs as sand lines. The breaks below can lead to systematic sales from programmed funds when long-term trends become negative.

However, it is clear that the emotions around Bitcoin have changed very dramatically and quickly. Myriad has been developed by the forecast market DecryptionThe trader, the parent company, Dastan, doesn’t believe Bitcoin will return to $105,000 after it reaches $125,000. The market odds were repeatedly reversed last week. And they swung wildly over the weekend: they supported the $125,000 “moon” scenario, and then 60% support the $105,000 “fate” outcome.

Key Level:

Immediate Support: $110,500 (Today’s Low)
Strong support: $107,000 to $107,600 (psychological level and previous price test zone)
Immediate resistance: $116,000 (recent integrated zone)
Strong resistance: $120,000 (previously integrated zone)

Ethereum (ETH) Price: Big sale despite signs of bullishness

If Bitcoin Zilla, which dropped $2.7 billion on a single clip, wasn’t wild enough, Ethereum went through its own roller coaster.

As it hits the new all-time high of $4,946 on Sunday…well, for now, it’s already 10% off that mark.

After opening date and time of nearly $4,800, Ethereum is now just over $4,400. A sharp rejection from the $4,800 resistance level suggests that ETH will earn him profits as it has recently hit an all-time high.

Ethereum price data. Image: TradingView

However, despite sales pressures, technical indicators suggest that the market is still optimistic.

Ethereum’s ADX is 41. This rising read is registered in the 40+ “very strong trend” zone, above the 25 trend confirmation level, indicating a strong directional movement.

The 58.97 RSI remains in the neutral realm, but it may seem contradictory given today’s rapid decline. This disconnect occurs because today’s drop is not yet fully filtered by calculation, as RSI smoothes price action over multiple periods (usually 14 days). Also, important DIPs like one ETH are cooling the strength of the trend. This is good news for tactical traders to open up room for growth in the long term.

The squeeze momentum indicator suggests that volatility for the ETH market has already been released. When this indicator moves from “on” to “off”, the market is usually already moving, and could enter the integration phase. For swing traders, this suggests that they wait for the next squeeze setup rather than chasing the current move.

The 50-200 EMA spread remains crucial that the gap has widened, the averages for both rise, and the current prices are trading above them. Even today’s sudden decline has not been able to bring dangerously ETH to testing EMA support for 50 days.

Perhaps that’s why Myriad traders still hope that Ethereum will reach $5,000 by the end of the year. Myriad users currently place these odds at 79%, but it’s down considerably from the odds of 90% yesterday.

Key Level: