Bitcoin price unexpectedly bounced back above $42,000, amid warning signs that a major breakout is increasingly likely. Ethereum (ETH), on the other hand, has overcome a possible selling pressure for now. Analyst Jonathan Morgan determines critical support levels before the Fed meeting to be held on March 15-15. We provide details…
Bitcoin price once exceeded $40,000 amid global uncertainty
Bitcoin price action is a victim of broader, global risk aversion due to Russia’s continued invasion of Ukraine it happened. As a result, the commodities, equities, foreign exchange and crypto markets all experienced massive price fluctuations. Bitcoin, the riskiest of risk assets, and the rest of the cryptocurrency market are particularly affected by any risk aversion.
Bitcoin is approaching a make or break point from a price action perspective. BTC confirmed the Ideal Bearish Ichimoku Breakout on Saturday, creating the first such confirmed entry since December 4, 2021. Typically, this type of short entry triggers massive short-term interest followed by selling pressure. However, the bears were unable or unwilling to keep BTC lower. The only remaining level of support for Bitcoin price on the daily chart is the bottom of the current bear flag at $38,000. If $38,000 fails to remain as support, bitcoin price can be expected to move towards the next Fibonacci expansion level between $30,000 and $30,500.
But the important Gann Seasonal Date, March 21, is approaching. Historically, when Bitcoin price is trading with a swing high or low around March 21, massive long trend moves begin. Considering the current time cycles coinciding with the downtrend, an uptrend is likely to escalate towards the end of March.
Ethereum price could drop to $1,800
Ethereum price was confirmed and last Friday the Ideal Bearish Ichimoku Breakout with a close below the Ichimoku Cloud. The bears were initially unable to push ETH down due to the shared support zone of $2,570. The Fibonacci retracement was achieved in the rally from July 2021 to November 2021 from the all-time high to the low of the strong bar. Sunday’s close confirmed a break below the bear flag and the 61.8% Fibonacci retracement. During Monday’s intraday trading, bulls tried to turn Ethereum price within a bear flag but failed.
An attempt to return Ethereum price within a bear flag took place today. Sellers managed to push Ethereum price below the crucial 61.8% Fibonacci retracement on Monday, and buyers attempted to push ETH above this critical level on Tuesday. However, selling has continued in earnest as ETH approaches the 2022 Volume Control Point and bearish trend. The first target for the bears is 100% Fibonacci expansion at $1,825. The lower level of the weekly Ichimoku Cloud has become the primary support level for Ethereum price and has not yet broken as support. The upside potential for Ethereum is likely limited to $2,900 weekly for the 50% Fibonacci retracement and the lower part of the Ichimoku Cloud (Senkou Span A).
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