Crypto: Bitcoin, Ethereum Target Key Levels

What to Know:

• Key takeaway #1 — Bitcoin is attempting a recovery, but faces resistance at moving averages.
• Key takeaway #2 — Altcoins like Ether and Solana are also trying to bounce, but face strong selling pressure at key resistance levels.
• Key takeaway #3 — Traders should watch key support and resistance levels for potential trend changes and be aware of overall negative investor sentiment.

Bitcoin is currently attempting to recover from the $84,000 level, but the recovery is facing selling pressure at key moving averages. Several major altcoins are also struggling to start a recovery, indicating that negative investor sentiment and selling at range highs are preventing a stronger bull trend from forming. Traders should closely monitor key support and resistance levels to gauge potential trend changes.

Bitcoin Price Prediction

Buyers are trying to defend the $84,000 support level, but any recovery is expected to encounter selling pressure at the moving averages. The downsloping 20-day exponential moving average (EMA) at $89,369 and the Relative Strength Index (RSI) in negative territory suggest that bears have a slight advantage. A sharp price rejection from the 20-day EMA increases the likelihood of a break below $84,000, potentially leading to a slump to $80,600.

To signal a potential trend change in the near term, buyers need to drive and sustain the Bitcoin price above the $94,589 resistance. If successful, the BTC/USDT pair could rally toward $100,000 and subsequently to $107,500. Monitoring derivatives data and funding rates could give insight into the strength of either bulls or bears.

Ether and BNB Technical Analysis

Ether (ETH) is attempting a relief rally from the support near $2,700, indicating buying activity on dips. However, bears are likely to defend the zone between the 50-day simple moving average (SMA) at $3,161 and $3,450 aggressively. If the Ether price sharply reverses from this overhead resistance, the ETH/USDT pair could retest the $2,700 to $2,623 support zone. A breakdown below this zone could lead to a plunge to $2,250.

BNB (BNB) is trying to bounce off the uptrend line, but higher levels are likely to attract sellers. If the BNB price reverses sharply from the moving averages, there’s an increased possibility of a drop to the $790 support. Buyers are expected to defend the $790 level strongly, as a break below it could sink the BNB/USDT pair to $730.

How is XRP Performing?

XRP (XRP) is attempting to bounce off the support line of a descending channel pattern, indicating demand at lower levels. The downsloping moving averages and the RSI in negative territory suggest that bears have an advantage. If the price reverses from the moving averages, bears will try to sink the XRP/USDT pair to the $1.61 support. Analysis of the XRP Ledger may offer insight into on-chain activity and potential price movements.

Conversely, if the XRP price continues higher and breaks above the 50-day SMA at $2.15, it suggests the pair may remain inside the channel for a while longer. Bulls will gain the upper hand upon a close above the downtrend line. This could indicate increased institutional sentiment and renewed interest in XRP.

What’s Happening with Solana and Dogecoin?

Solana (SOL) fell below the $121 level, but bears are struggling to sustain lower levels. The recovery is expected to face selling pressure at the 20-day EMA ($131) and then at the 50-day SMA ($142). If the price reverses from the moving averages, bears will again try to push the SOL/USDT pair below $121, potentially leading to a drop to $110 and then to the $95 support.

Dogecoin (DOGE) remains below the $0.14 level, but bulls are attempting to initiate a relief rally. The RSI shows a positive divergence, indicating weakening bearish momentum. Bulls must push and sustain the DOGE/USDT pair above $0.16 to signal a comeback, which could be influenced by overall market liquidity and speculative trading.

What Factors are Influencing the Current Market?

Several factors are influencing the current crypto market, including negative investor sentiment and selling pressure at range highs. Macroeconomic factors, such as interest rate hikes by central banks like the Bank of Japan (BoJ), can also impact the market. Arthur Hayes suggested that negative real rates could be bullish for Bitcoin in the long term, while Fidelity’s Jurrien Timmer suggested Bitcoin may have topped out in its four-year cycle halving phase.

Additionally, Tether CEO Paolo Ardoino noted that Bitcoin could be impacted by the so-called AI bubble due to its close correlation with capital markets. These factors contribute to the volatility and uncertainty in the market, making it crucial for traders to monitor derivatives data, funding rates, and institutional sentiment.

Despite attempts at recovery, Bitcoin and major altcoins face strong resistance and negative sentiment. Monitoring key support and resistance levels is crucial for navigating this uncertain market.

Related: XRP Forecasts: Investor OK With Zero Value

Source: Original article