The top two assets by market cap, Bitcoin (BTC) and Ethereum (ETH), continue to consolidate. The cryptocurrency market had a quiet weekend in this environment. Still, analysts say significant price action is brewing. The Tom DeMark Sequential (TDS) indicator shows sell signals for BTC and ETH.
Metric showed sell signals on Bitcoin and Ethereum
As you follow on Kriptokoin.com, Bitcoin and Ethereum remained stagnant throughout the weekend. But a few metrics indicate that volatility is about to continue. BTC is stuck in a narrow price range between $21,500 and $21,000. ETH continues to trade between $1,250 and $1,190. For both cryptocurrencies, market sentiment shows ‘extreme fear’. That’s why prices have dropped over the past few days.
Interestingly, one particular technical indicator points to the possibility of a bearish. This indicator is the Tom DeMark Sequential indicator with more than 25 signals. You can see the successful signals of the indicator from this article. Analysts interpret the signals and other data shown by the metric as follows.
The metric recently showed sell signals on the nine-hour chart of Bitcoin and Ethereum. Developed as a green nine candlestick, bearish formations are an indication of a one to four candlestick retracement. Although BTC and ETH took a short dive after technical improvement, there was no clear breach of support or resistance.
Source: TradingViewImportant levels to watch for BTC and ETH
The transaction history shows two critical price points that could help determine Bitcoin’s next direction. Roughly 882,400 addresses had previously purchased 570,000 BTC between $20,800 and $21,500. Meanwhile, over 200,000 addresses hold 210,000 BTC above $21,500 and $22,100.
Given the lack of resistance ahead, a sustained nine-hour candlestick close above $22,100 could be significant enough to trigger a bullish break towards $25,000 or even $27,000. But if the $20,800 support level is abandoned, the next key area of interest is $19,000.
Source: IntoTheBlockThe transaction history also reveals that Ethereum cannot afford to lose the $1,100 support level. It is possible that such a vital demand zone breach could trigger another sell-off that sent ETH to $600. Therefore, for ETH to have a chance to rise to $1,700, it has to surpass the $1,320 resistance barrier.
Source: IntoTheBlockThe macroeconomic outlook is still not positive as recession fears escalate. Therefore, it is necessary to wait for a decisive close below the resistance or above the support to enter the markets. A few metrics show that the bottom is near. However, more downside moves are likely before the trend reverses.
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