- Bitcoin and Ethereum are recovering from the early summer slump surrounding the crypt market.
- Despite continued repression, both Bitcoin and Ether recently reached two-month highs.
- The analysis contained in the article is based on pricing and chart formations. For more information on pricing or chart patterns, visit us DailyFX education section.
Cryptographic markets continue to come back as both Bitcoin and Ethereum have recently reached a two-month high. Each of them is working with a bit of resistance, which, at least for now, has kept this progress away, but raises the question of whether we are at the forefront of another strong peak.
Starting with Bitcoin: the cryptocurrency hit a very strong bid on the back of the debate on Elon Musk-Jack Dorsey. The most important withdrawal, at least in my opinion, is how both seemed to take on a bullish tone, while implying that they are not going to sell any of their holdings. Dorsey has already said that Bitcoin is the most important thing he thinks he will ever work for, and that is a big statement for the person who is currently the CEO of the two listed companies.
This helped Bitcoin continue to recover after testing less than 30k handle just two weeks ago. Prices have continued to rise to a two-month high, finally resisting the upward trend in April and May this year.
Bitcoin daily price schedule
Bitcoin: Seek support
The big question right now is whether buyers are going to offer support that can keep the door open for scenarios, looking for prices that would raise the top of the new two months. Nearby is a previously inverted support location, drawn at about 36,623; and below that is another prior swing that could provide a support potential at 34,635, which is close to 35,000 psychological levels. Slightly lower reveals 32,101 and can be seen as an s3 support area for longer-term larger prospects in Bitcoin.
Bitcoin four-hour price chart
The Ethereum rally continues
The issue of restoring Ethereum is perhaps even more impressive than that shown in Bitcoin, especially when we consider this recent withdrawal.
Similarly, Ethereum has tested a large support zone several times in the last few months. In the air, this is the space between the two levels of Fibonacci. And like Bitcoin, Ether has been on a strong uptrend over the past two weeks, as prices have risen to two-month highs and the resistance here stems from the same Fibo retracement that helps set support. This is the 50% marker for the same move that currently determines resistance.
Ethereum daily price schedule
In the four-hour chart below, I look at three different areas where you can support Ethereum, the closest of which is currently in play as buyers try to keep up. The next big spot comes from the 61.8% Fibonacci retracement of the same important move we’ve been discussing, and it reaches pricing around 2192. And as an “s3” level, I’m looking at another pricing momentum around 2040.
Ethereum four-hour price chart
– Written James Stanley, Senior strategist For DailyFX.com
Get in touch and follow James Twitter: @JStanleyFX