A closely followed crypto analyst says that leading digital assets Bitcoin (BTC) and Ethereum (ETH) are showing bullish movements but now face critical resistance levels.
In the latest issue of the Technical Roundup newsletter, Cred says that Bitcoin could potentially pull back between $38,000 and $40,000 as it moves from support to resistance.
“Bitcoin/Dollar is approaching multi-timeframe resistance in the mid-high $40,000 area. Just like there was a lot of support overlap in the low-mid $30,000s, there is resistance overlap in the mid-high $40,000s.
Specifically, $46,000-$47,000 is the midpoint of the monthly range. It is also the weekly cluster and pre breakdown point. Finally, the slow-moving trend metrics we look at from time to time (21-week moving average, 50-week moving average, and 200-day moving average) are all clustered around $50,000.”
As ETH retests the $3,050 to $3,310 level, Cred also gives the potential price targets for when the crypto asset breaks out or bounces from this price point. At time of writing, Ethereum is exchanging hands for $3,230.51.
“Above $3,050-$3,310, there is a clear target at $4,000.
If $3,050-$3,310 pulls back, a plausible higher low area may be found at $2,700 on the daily time frame, but the trend would have to be very strong for a pullback level like that to hold. Otherwise, our eye is drawn towards the untested range low at $1,900.”
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Featured Image: Shutterstock/prodigital art/monkographic/Konstantin Faraktinov