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Bitcoin, Ethereum Technical Analysis: Bullish Sentiment Returns To BTC Following Yesterday’s Sell-Off

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Bitcoin, Ethereum Technical Analysis: Bullish Sentiment Returns To BTC Following Yesterday’s Sell-Off

Following yesterday’s drop in price, bitcoin stabilized during Thursday’s session, as prices hovered marginally below $21,000. Bulls are attempting to take BTC back towards this resistance level, which was broken as a result of Wednesday’s sell-off.

Bitcoin

BTC was trading marginally below $21,000 on Thursday, as prices slightly rebounded following declines on hump day.

Following Wednesday’s low of $19,848.08, BTC/USD rose to an intraday high of $20,835.75, earlier in today’s session.

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This move comes as bulls seem set to once again break out of the current resistance at $21,100, which has been in place for the last week.

BTC/USD – Daily Chart

Hope of a break will be increased by the fact that the 14-day RSI has moved beyond a resistance level of its own.

As seen from the chart, after almost ten days of reluctance to give way, the 30.50 ceiling was finally broken.

The next visible level of resistance looks to be the 36.60 point. Should we see relative strength move to this point, BTC could be trading above $22,000.

Ethereum

ETH was also back in the green on Thursday, after appearing to overcome Wednesday’s hump of uncertainty.

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Prices of the world’s second largest crypto token rose to an intraday peak of $1,119.61, which comes less than a day after nearly dropping back below $1,000.

As a result of today’s rebound in price, bulls will likely attempt to maintain this momentum, with some eyeing a key resistance point.

ETH/USD – Daily Chart

This ceiling is at the $1,190 mark, which is the main obstacle that could prevent ETH from moving back into $1,200.

Overall, momentum seems bullish, with the Relative Strength Index tracking at its highest level in almost two weeks..

As of writing, the index is tracking at 32, with the next resistance level at 35.85.

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Do you expect bullish momentum to increase as we head to the end of the week? Leave your thoughts in the comments below.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Altcoins

FTT: Unraveling implications of recent drawdowns on technicals

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FTT: Unraveling implications of recent drawdowns on technicals

FTT’s bearish break below the $28.7-level led the alt to retest and eventually breach the $25-support (now immediate resistance). The recent patterned break took a plunge below the seven-week trendline resistance (white, dashed) on the 4-hour timeframe.

A compelling close below the $25-level could expose FTT toward a downside before any bullish revival chances.

Due to the relatively high correlation with Bitcoin alongside the broader sentiment, the altcoin could see trend invalidations. At press time, FTT was trading at $25.127, down by 8.12% in the last 24 hours.

FTT 4-hour Chart

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Source: TradingView, FTT/USD

From a near-term outlook, FTT’s rising wedge breakdown has pulled the alt below its 20 EMA (red) and the 50 EMA (cyan). Furthermore, a convincing bearish crossover of these EMAs could impair the near-term buying efforts. 

A close below the $25-level could aid near-term selling efforts to test the $23-$24 range in the coming sessions. However, an immediate bounce-back from the $25-zone could delay the bearish tendencies. In this case, the buyers would aim to test the 20 EMA near $26 before a reversal.  

FTT Daily Chart

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Source: TradingView, FTT/USD

In this timeframe, FTT saw a strong reversal from the 38.2% level. sustained close below the 23.6% level could propel a low volatility phase in the $24-$25 range in the coming days. Thus, the potential shorting targets would remain in the $24-zone. Also, with increasing trading volumes, the 24-hour losses depicted a rather strong bear move.

Source: TradingView, FTT/USD

The Relative Strength Index (RSI) plunged below the midline after barely sustaining itself above the 50-mark. Looking at its south-looking tendencies, the buyers still had a long way to alter the broader outlook in their favor.

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Also, the CMF dipped below the zero-line and reaffirmed the bearish strength. But any comebacks along its trendline support can aid near-term recovery efforts.

Conclusion  

Given the break below the $25-level on the H4 alongside the patterned break and bearish indications on the daily timeframe, FTT could test the $23-$24 range. The targets would remain the same as mentioned above.

Any bearish invalidations should likely find a rebounding region in the $26-zone. Also, investors/traders must keep a close eye on Bitcoin’s movement as FTT shares a 58% 30-day correlation with the king coin.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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Altcoins

Solana [SOL] traders going short can take-profit at this level

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Solana [SOL] traders going short can take-profit at this level

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.

In a previous article, we explored how crucial the $37-$39 area was for the bulls to defend. If the bulls had been able to defend this demand zone, a move higher could have been on the cards for Solana. Yet, the selling pressure behind Bitcoin acted as a catalyst and sent many major altcoins reeling. Solana had been fighting to break above $42.5. At press time, it appeared to be headed back to a support level where the rally to $42 had begun.

SOL- 1 Day Chart

Source: SOL/USDT on TradingView

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On the daily timeframe, some important levels close to the price were marked. The low of May, the swing high of June as well as the swing low, were all likely to be important levels in the weeks to come. A hidden bearish divergence (orange) developed just as the price knocked on the $42.5 mark. This signaled a continuation of the former downtrend, and SOL came tumbling down in recent days.

The swing low of May at $37.37 has acted as support and resistance over the past month. It was expected that the bulls would attempt to defend this zone, which was a support zone on lower timeframes.

Yet, the price crashed right through it and reinforced a bearish bias for Solana. Given the fact that Bitcoin also faced selling pressure, it appeared that the direction for SOL in the next few days would be southward.

SOL- 2-Hour Chart

Source: SOL/USDT on TradingView

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The 2-hour chart showed the price to slip beneath the 38.2%retracement level and cruise lower. The $37.37 was broken and was not yet retested as resistance. The RSI approached oversold territory, while the Stochastic RSI was in the oversold region. Hence, a possible bounce toward the $37 area could occur before a subsequent drop in prices.

There is also the possibility of a move lower without a bounce from $33.75. The A/D line has been going lower and lower, and the selling pressure could see SOL drop without a bounce.

Conclusion

The $32 region was a good area for short positions to take-profit at. A bounce to $37 could offer an ideal entry. Short positions can use the Supertrend indicators to set a stop-loss. Both the daily and the hourly timeframes showed selling pressure behind Solana.

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Altcoins

XRP traders can capitalize on this pattern’s break for near-term profits

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XRP traders can capitalize on this pattern’s break for near-term profits

XRP has been steadily declining over the last three months after plunging below the $0.795-level. The buyers have not been able to inflict a trend-altering rally beyond the bonds of its 20 EMA (red) yet.

A rebound from the immediate two-month trendline support (white, dashed) can provide near-term recovery chances. the sellers would strive to potentially curb the bullish volatile move and provoke a squeeze phase near the $0.3-zone. 

At press time, XRP traded at $0.3267, up by 6.23% in the last 24 hours.

XRP Daily Chart

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Source: TradingView, XRP/USDT

The long-term bearish rally formed a two-month resistance that recently turned into support (white, dashed) on the daily timeframe. This level has proved to be an important area of value since mid-April for XRP.

After poking its 16-month low at the $0.33-level on 18 June, XRP saw a bounce back from the $0.28-support. But with the 61.8% Fibonacci level standing sturdy, the altcoin saw an expected rising wedge breakdown on its chart. Thus, falling back below the 20 EMA while the moving average still looked south.

The price action was now relatively near its 20 EMA. Thus, a volatile move in the coming days should not surprise the traders/investors.

Recovery from the $0.32-zone would help the buyers test the 38.2% level in the $0.34-region. Buyers needed to find a close above this level to retest the golden Fibonacci level.

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Rationale

Source: TradingView, XRP/USDT

The bearish Relative Strength Index (RSI) fell back into the bearish track after reversing from the midline. A revival of the 36-mark could aid the buying efforts to test the $0.34-zone. 

Although the CMF dipped below the zero-mark, its lower troughs have kept alive the possibility of a bullish divergence with price.

Conclusion

XRP’s drop toward its trendline support could provoke a rebounding opportunity for the buyers. A bullish divergence on the CMF would further heighten these chances. In this case, the 38.2% and the 50% levels could continue posing recovery barriers.

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However, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.

With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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