Bitcoin & Ethereum price prediction: bulls reacting but getting no reward
- Bulls came back yesterday, responding to technicals favoring pullbacks: outlook has improved but bears still dominate
- The remaining of the week will tell us a lot about the Crypto mid-term outlook
Cryptocurrencies bounced back yesterday, reaching key levels but with different results. Bitcoin re-conquered $7400 while Ethereum got stuck just below an important trend-line that is pushing the price back below $570.
BTC/USD 4H chart
Bitcoin overcame with determination the price resistance located at $7400 to then meet the 50-EMA that is now containing and compressing the price back to the support level. The outlook for the BTC/USD bulls has improved some, but following the price action for the next days will be key to determine the mid-term scenarios.
On the upside, the aforementioned 50-EMA at $7570 is the level to breach for the bulls today. Above there, more resistances located at $7850, at $7960 (100-SMA) and again at the $8400 resistance.
Below the current price, the vital support is at $7400, followed by $7100 and the base of the channel at $6950.
MACD in the Bitcoin 4-hour chart has advanced a lot, gaining inclination and opening. It is showing a much better outlook for a bullish progression, but it is still too early to say it will be effective. The indicator needs to clearly breach the equilibrium line to avoid more bearish runs.
Directional Movement Index in the same chart is giving us a worrisome signal, with the sellers losing some strength to the current levels. The selling force has diminished but there has been no capitulation on this side. ADX is confirming the movement and sliding considerably.
ETH/USD 4H chart
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Ethereum followed the broad Crypto bounce, but soon met an important trendline that stopped its bullish attempt. Right now, ETH/USD is compressed between that trendline resistance and the $565 level. We'll see how this struggle gets resolved, as Ethereum is not enjoying its most bullish outlook right now.
On the downside, there is a support at $565, followed below by the $520 level and, as a very extreme target, the base of the channel at $475.
On the upside, first resistance is at the mentioned trendline at $570, followed closely by the 50-EMA at $588 and another price resistance at $620.
MACD in the Ethereum 4-hour chart has advanced a lot, gaining inclination and opening. It shows much better prospects for a bullish progression, but it is still too early to consider it effective. It needs to clearly surpass the equilibrium line and avoid getting dragged to another bearish run.
Directional Movement Index in the same chart shows sellers staying at the same level but with no apparent increase, while sellers have been decreasing although still above their counterparts. ADX has diminished its intensity but it is trading at pretty high levels that project the Ethereum's weakness to continue in the upcoming days.
Author
Tomas Salles
FXStreet
Tomàs Sallés was born in Barcelona in 1972, he is a certified technical analyst after having completing specialized courses in Spain and Switzerland. He expanded his technical training following the guidance of great experts on the financial markets.
