Analysts are currently predicting that in coming weeks, Bitcoin will dissociate from the equity market. This simply means that each of the assets will begin to forge its own path. This action might cause more investors to opt for Bitcoin as nations governments use more easing actions. Also, the fast-approaching Bitcoin halving could cause a massive bull run.
For some weeks now, lots of cryptos have been declining from their 50-day SMA as they haven't been able to go past it. The question now is: will the bulls recover at the lower levels and then cause an increase in the prices?
Let's examine the charts.
BTC/USD
It seems the Bitcoin seems to be losing its strength after its relief rally towards the $8000 margin. BTC has currently gone under the 20-day EMA at $6840 and this is an indication that the bears are beginning to increase in strength.
Source: Tradingview
Although there is a support at $6553.21, BTC could go way below that all the way to $5660.65 which is the critical support. A crack in the critical support might see BTC dropping to $5000.
This negative assessment would be nullified once the BTC/USD pair bounces off the present levels and surges above the $7454.17 resistance. If this happens, it will indicate that there was a lot of purchase at the lower levels. As advised in previous price analysis, hold your long positions with your stop-loss at $5600.
ETH/USD
For some days, ETH has been trading in between MA, but presently, it seems to be going under the 20-day EMA at $153.14. If this happens, then the latest breakout was most likely a bull trap.
Source: Tradingview
The RSI has currently slipped under the 50s level while the 20-day EMA levelled out. This is an indication of the bulls becoming weak.
If ETH continues to fall under the 20-day EMA and the $137.086 support is not strong enough to hold it, then the next stop might be at $117.09. We advise traders to secure their long positions by placing their stop-loss at $135.
But if the ETH/USD bounces off the present levels, move over the 50-day SMA at $168 and then above the $176.103 resistance, this would show strength. If this happens, we anticipate a target of $250 and then $288.599.
Note: This post is culled from an original article by cointelegraph
