- Bitcoin recovered from the $18,200 level this week
- The largest cryptocurrency the world could Resistance still not breaking from $19,500
- Likewise, Ethereum Bulls should continue to attempt the $1,320 resistance
is back to $18,860 after testing $19,000 for reaction buying from this week’s oversold levels. has reversed its recent selling momentum at $1,250 as bulls attempt to scale the $1,320 resistance.
The chart above shows that Bitcoin has set the $18,200 level as its bottom zone this week. The average level of $19,500 held as solid resistance throughout the week. The magnitude of the post-Fed decline was less than on September 13 after rates were released.
However, the recent price action shows that the recent macroeconomic data has likely been fully priced in by the BTC market.
According to the short-term price action, $19,250 is the closest support level for BTC/USD today, while the $19,500 level is the level just above the resistance. After this level, BTC could see another resistance at $19,900 ahead of $20,000.
If demand for BTC increases in weekend trading – and if we have a weekly close in the $19,500 – $900 range, chances are the cryptocurrency will enter the $20,000 band next week. In such a scenario, the $20,900-$21,730 area should emerge as the next target.
On the other hand, the Stochastic RSI on the daily outlook has picked up some bullish momentum from the oversold territory after falling below the 20 level.
This momentum could increase if BTC closes above $19,500 on the hour and RSI stochastic indicator signals improve. It also shows the Average Directional Movement index (ADX) indicates that the bullish move has strengthened with the buying off the September 21st low.
In the lower region, the $18,400-$800 area remains the support area for Bitcoin. A weekly close below this area could result in a continuation of the downtrend in BTC/USD, in a move that would likely continue below $17,000.
Ethereum that continued its downtrend after the found a foothold at the $1,250 level after shedding the former $1,320 support earlier in the week.
If Ethereum manages to stay above $1,320 today and over the weekend buying demand is likely to increase and the cryptocurrency could move towards the $1,450 – $1,590 range. If this area is breached with daily closes, the chances of ETH/USD rallying to $1,750 – $1,800 increase.
However, if the price of ETH fails to stay above $1,320, the downside momentum can be expected to continue towards $1,100 with increasing selling pressure.
Geopolitical risks to keep crypto markets under pressure
Although the pivotal week for global central banks is mostly behind us, investors should keep in mind that several geopolitical risks could still be priced into the crypto market in the coming days,
Russia’s declaration of partial mobilization and the fact that the referendum process in the separatist regions of Ukraine, Donetsk and Luhansk will start today and last until the beginning of the week can be seen as a pressure factor on risky markets, including cryptocurrencies.
Should these regions commit to Russia as a result of the referendum, this could lead to a renewed escalation of tensions between Ukraine and Russia.
In addition, the energy crisis in the European region remains on the agenda and drives up mining costs. Additionally, the dollar continued to gain strength in global markets, putting pressure on the correlation between BTC/USD and ETH/USD.
disclosure: The author does not hold any of the securities mentioned in this article.
Source: Crypto News Deutsch