Strong inflation brought down the price of bitcoin yesterday from $22,800 to the $20,000 support level. This morning, the price of Ethereum formed a new seven-day low at the $1550 level. According to the data, bitcoin and Ethereum fell below recent support levels in the last 24 hours, prompting more than $250 million in liquidations that followed the two assets.
Bitcoin analysis
Strong inflation brought down the price of bitcoin yesterday from $22,800 to the $20,000 support level. The price stabilized above the $20,000 level in the first part of the day. Today’s high is $20540, and the price continues to move sideways. For a bullish option, we need a new positive consolidation and a return to the $21000 level. Then we would get additional support in the MA200 moving average. And our resistance is in the MA50 moving average. A break of the bitcoin price above the $21,000 level would increase the chances of further recovery.
Potential higher targets are $21500 and $22000 levels. For a bearish option, we need a continuation of the negative consolidation and a price drop below the $20,000 support level. Potential lower targets are $19,500 and $19,000 levels.
Ethereum analysis
This morning, the price of Ethereum formed a new seven-day low at the $1550 level. We are now trying to hold above the $1600 level. We need a pullback below and a retest of this morning’s low for a bearish option. A breakthrough could take us down to the $1,500 support level, the September low. For a bullish option, we need a new positive consolidation. First, we need to hold above the $1600 support level, and then we need a bullish impulse to continue. The first target and resistance are at the $1650 level and the MA50 moving average, and there we are very close to the MA200 moving average.
If we managed to climb above and reach the $1700 level, we would have a better chance of continuing the recovery. Potential higher targets are $1750 and $1800 levels.
Market overview
According to the data, bitcoin and Ethereum fell below recent support levels in the last 24 hours, prompting more than $250 million in liquidations that followed the two assets. Futures tracking bitcoin lost more than $130 million, while Ethereum futures lost $125 million. Bitcoin fell about 9%, the most among major cryptocurrencies, while Ethereum fell 6%, according to data from CoinDesk.
