Bitcoin & Ethereum: BTC & ETH See Downturn After Not Closing Above Key Levels – Will Downtrend Extend?

Key highlights:

• Bitcoin is down another 3% today as the cryptocurrency does not close above $ 50,000 and is below $ 48,000.
• Ethereum is also down a solid 4% today as it doesn’t break above $ 1,581 and returns below $ 1,500.

The market is lashing again. Just when we thought Bitcoin was going to rebound from last week’s 25%, the cryptocurrency reversed to the $ 50,000 level and started going down again.

As a result, the rest of the market also experienced a downturn. Ethereum fell around 5% today as it was back below $ 1,500.

It is still unclear whether the downtrend will continue to break through the recent late February lows, but it is clear that they are currently heading in that direction. If the lows break, there could be a prolonged downtrend in the coming weeks.

Let’s take a look at these top two coins and offer some strong areas of support and resistance for the future.

Bitcoin price analysis

What’s happening?

Last week, Bitcoin fell below the ascending price channel within which it was traded for the entire period of February 2021. After breaking below the channel, the coin continued to drop until it hit support at the $ 45,000 level. It continued to rise below that to only hit $ 43,200 (0.5 fib retracement), but buyers quickly regrouped to bring the price back above $ 45,000 before the daily candle closed.

Bitcoin showed some hope earlier this week. It rebounded from $ 45,000 on the way back to $ 50,000. On Wednesday, Bitcoin had finally seen a surge of over $ 50,000 as it rose higher. However, it encountered resistance at $ 52,580 provided by a bearish .618 fib retracement and was unable to break that level.

As a result, Bitcoin flipped and started moving back down towards the current $ 47,690 level.

There is still hope to hold on to the fact that institutions may still buy Bitcoin at those levels below $ 50,000.

Institutions have been the main driving force behind the recent BTC price hikes in recent months as they look for a method to hedge against inflation.

Data from CryptoQuant shows that institutions are still piling up at these levels, as another 12,000 BTC left the Coinbase Pro exchange yesterday, indicating that they are likely to be headed towards cold storage:

Short-term forecast of BTC price: Neutral

While BTC is still bullish in the medium term, we need to consider it neutral in the short term. To be bullish in the short term, BTC would have to produce a daily candle that closes above USD 52,575 (bearish .618 fib retracement). On the flip side, BTC would go bearish in the short term if it produced a daily candle that’s just under $ 32,200 (.5 fib retracement).

If sellers are pushing down, the first level of support is at $ 46,527 (.382 fib retracement). This is followed by USD 45,000, USD 43,200 (.5 Fib Retracement), USD 42,000 and USD 41,433 (down rate 1,414 Fib Extension).

Additional support is at $ 40,000, $ 39,000 (disadvantage 1,618 Fib Extension), $ 37,500, and $ 36,000 (100-day EMA).

Where is the resistance to the top?

On the flip side, the first level of strong resistance is at $ 50,000. This is followed by USD 50,772 (bearish .5 fib retracement), USD 52,575 (bearish .618 fib retracement) and USD 54,373 (1,272 fib extension).

Beyond $ 55,000, the resistance is at $ 57,172 (1.414 Fib Extension), $ 58,000, $ 58,367 (ATH price), and $ 60,000.

Ethereum price analysis

What’s happening?

Ethereum is in a similar position to Bitcoin. Last week, the cryptocurrency had penetrated below an ascending price channel within which it had traded for the entire 2021 period.

Ethereum fell further after breaking below the channel until it found solid support at $ 1,424 – the previous ATH price. Below that, it rose to only hit $ 1,288 (0.5 fib retracement), but buyers quickly regrouped at the end of the day to close the daily candle above the $ 1,424 support.

Earlier this week, Ethereum bounced back from the support at $ 1,424 as it began to rise again. It managed to break back above $ 1,500 but struggled to close a daily candle above the $ 1,581 resistance provided by a bearish .382 fib retracement. He managed to hit as high as $ 1,658 on Wednesday, but he still struggled to close the candle above $ 1,581.

Today Ethereum fell at $ 1,463 in support provided by a .382 fib retracement.

ETH price short-term forecast: Neutral

Likewise, Ethereum is still optimistic in the medium term, but we need to consider a neutral market in the short term. The cryptocurrency would need to close above the resistance at USD 1,581 to go bullish in the short term. On the flip side, a daily candle that closes below USD 1,288 (.5 Fib Retracement) would make the market bearish in the short term.

If sellers are pushing down, the first level of support is at $ 1,463 (.382 fib retracement). This is followed by support at USD 1,424 (previous ATH level), USD 1,354 (down rate 1,414 Fib extension), USD 1,288 (.5 Fib retracement) and USD 1,255 (down rate 1,617 Fib extension).

Additional support is at $ 1,200, $ 1,173, $ 1,113, and $ 1,000.

Where is the resistance to the top?

On the flip side, the first level of resistance is now at $ 1,521. This is followed by USD 1,581 (bearish .382 fib retracement), USD 1,600 and USD 1,688 (bearish .5 fib retracement). If the bulls continue to break above $ 1,700, the higher resistance is at $ 1,778, $ 1,850, $ 1,905, and $ 2,000.

Previous technical analysis

At CoinCodex, we regularly publish price analysis articles that focus on the major cryptocurrencies. Here are 3 of our latest technical analysis articles: