Bitcoin and Ethereum Analysis – BTC and ETH Price Monday, January 09, 2023
Despite a good first week of 2023 for equity indices, current uncertainties in the financial markets have barely decreased. For example, if inflation in the United States has peaked, it remains at high standards compared to 2008. This would not require flexibility in the Fed’s monetary policy. Hence the ongoing lack of BTC and ETH price action since the FTX crash.
In an already confusing context, let’s review The latest technical analysis of Bitcoin and Ethereum in weekly units. Hoping that the market scenario will be resolved.
Bitcoin in Weekly Units – Finally a Real Bounce Above $16,000?
in Asian time Bitcoin suddenly woke up to finally break the $17,000 barrier more easily. This is far away, allowing MACD and RSI to maintain their momentum towards the zero line and the neutral zone at 50, respectively. Icing on the cake, we still have bullish divergences between BTC prices and technical indicators. However, there is still a long way to go to confirm them.
And for good reason, Weinstein’s Phase 4 would be far from stopped by buyers. Even as it loses intensity due to the 30-week moving average (MM30-week), it itself sees a significant downward slope. Resistances still need to be overcome. Because in the weekly chart above, buyers are eager for favorable signals.
Assuming that the refund of $16,000 is approved in good faith, we may see bitcoin prices rise with the prospect of eventually rising to $20,000, had changed from support to resistance during the bankruptcy of FTX. But as we said before, it takes more than $20,000 to see a dip in a bear market. Therefore A return to the $26,000-$30,000 zone could potentially be a key starting point for buyers.
On the contrary, A break of $16,000 will psychologically sink buyers with a third correction wave towards $12,000. In this case, current growth will approach the historical standards of these precedents in 2014 and 2018.
Is it possible to return to Ethereum – 1400 in weekly units?
Ethereum has a better chart situation in weekly units compared to Bitcoin. If the bear market remains relevant since the last ATH in November 2021, it has the merit of not approaching the mid-June 2022 low to avoid the emergence of a third correction wave. However, the resistances above his head have not been overcome until now, despite repeated attempts.
But after good monetary news from China, ETH prices are approaching $1400. So much so that $1,200 is currently acting as support. At the same time, technical indicators are also advancing. But how difficult is it to renew the connection in the direction of their respective water lines.
Assuming we rode the current pace at the beginning of the week, The probability of Ethereum breaking above $1400 will lead to a rally towards $1700, a resistance that has buyers grinding their teeth. And if he smiled more, prices could rise to $2,000.
Otherwise, a break of $1,200 would take us to $1,000, not far from last year’s lows. And it should not be complicated later. Because exactly A sharp decline below $1,000 will trigger a new correction wave towards $700.
BTC and ETH – Bear markets are stalling, but there are still no buyers
While the Bitcoin and Ethereum bear market has so far not accelerated to the downside, it is clear that buyers have not set their hearts on reversing the trend. And on a purely graphical level, resistance would prove to be walls that were difficult to break down. Because strictly speaking, all the rebounds since last summer have been sold.
Add the crisis of confidence in cryptocurrencies after the scandalous episodes (the collapse of Luna and the bankruptcy of FTX) until all abuses are partially eliminated. And on the other hand, a transition from a disinflationary period to an inflationary period would prompt the Fed to become more hesitant about monetary easing. As a result, Bitcoin and Ethereum may lose their key bullish support, central bank liquidity.
Therefore, investors used to the scheme bad news is good news they would almost fall off their chairs for fourteen years. The assumption that the Fed will not come to put out the fire by opening the liquidity floodgates means thata new monetary paradigm is being formed. Inflation is expected to reach higher levels during the decade of 2020.
In this particular case, the investment habits of the last four decades will be partially called into question. We are currently navigating uncharted waters due to the inability of BTC and ETH to evolve in a sustained inflationary environment.
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