Bitcoin and Ethereum reach critical support levels, accumulating liquidity for possible rallies. A technical indicator with more than 25 signals indicates that the market giants may recover soon.
Bitcoin and Ethereum trading on weak ground
With Bitcoin and Ethereum expected to recover quickly, the level of optimism among investors could be a problem. Bitcoin’s price has wiped out about $4,000 in the last 48 hours. The last pullback came after it rejected $43,000 on April 21. Still, reclaiming Bitcoin support is gaining momentum.
As you can see from this article, the TD Sequential indicator with more than 25 correct signals gave a buy signal to buy Bitcoin at current levels. A red nine candlestick has formed, showing the bullish one to four candlesticks. According to analysts, this formation could lead to a rebound to $40,650 or perhaps $41,200. Specifically, Bitcoin needs to hold $39,400 to prove its bullish argument. If this critical support level is not held, the next critical demand zones are $38,500 and $37,300.
Ethereum price gains momentum
After pulling back more than 8% in the last 48 hours, Ethereum (ETH) seems to be gaining positive momentum. As long as ETH price trades above $2,950, it could keep the bulls in the field. As with Bitcoin, on the four-hour Ethereum chart, the TD Sequential indicator is giving a buy signal. If buy orders increase around current price levels, Ethereum could gain over 150 points market cap. A break of $3,100 could lead to additional gains, while a break from $2950 as support could result in a drop to $2,880.
Techniques indicate a short-term reversal, while current confidence levels can be interpreted as a warning.
Almost 77% of all Bitcoin positions on Binance are on the long side, as we have covered in Cryptokoin.com analysis. As of April 23, the BTCUSDT long/short ratio was at 3.32. Most traders on the largest exchanges expect prices to rise further, which sets the stage for a prolonged squeeze.
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