Bitcoin and Ethereum have dropped significantly over the past month and appear to be oversold. Both coins are now showing bullish signals on their three-day charts, according to the Tom DeMark (TD) Sequential indicator, which holds more than 25 signals.
Bitcoin and Ethereum are trading in critical support zones
Bitcoin and Ethereum are trading above decisive support levels, as we have mentioned in the analysis of Kriptokoin.com. Bitcoin’s price fell over 22% last month from a high of $48,223 to a recent low of $37,693. For now, a short break below the 78.6% Fibonacci retracement line at $38,530 seems to be holding.
What levels does the Tom DeMark (TD) indicator point to for Bitcoin and ETH?
As you can see from this article, the Tom DeMark (TD) Sequential indicator with over 25 cryptocurrencies and Bitcoin signals correct predicts that investors who have stayed on the sidelines can re-enter the market and help BTC recover. It shows the rise of one to four candlesticks on Bitcoin’s three-day chart. According to the indicator, bitcoin price could rise steadily above the $38,530 support level to $43,670 and then $52,000.
Ethereum (ETH) has also been falling in the past month. It has retraced more than 23% since the beginning of April and lost over $800. The second-largest cryptocurrency by market size appears to be approaching a critical demand zone.
Ethereum (ETH) price prediction
On the three-day chart of ETH, the TD indicator is already giving an aggressive buy signal of 13, followed by 9 red candlesticks. According to the indicator, Ethereum price could decline below $2,700 before surging higher. Only a three-day close above $3,000 could solidify the bullish outlook. If that happens, investors on the sidelines could bounce back and push Ethereum above $3,600 or possibly $4,000.
However, the paucity of trading activity in the previous few days implies that retail investors are not interested in participating in the market at current price levels. According to the indicator, ETH could drop below $2,700 and target $2,500 or possibly $2,160 if buy orders are not fulfilled soon.
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