- BTC/USD broke out of channel/bear-flag, but bounce has that in question
- Trend-line off the record high is currently being challenged
- ETH/USD is trading around the important 1700 level
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Late last month BTC/USD broke down out of a channel/bear-flag, and on that it appeared poise to make a new cycle low. However, it found support around 18600, which now has price just back inside the channel and challenging an important threshold.
The trend-line running down off the record high is currently getting tested and could become a meaningful source of resistance if BTC fails to climb above. There are two connecting points (min to make a trend-line, obviously), and so this would be the first validation of the level if we see it act as resistance.
A turn down from the trend-line would be treated as a sign that the ongoing bear market is ready to exert more downward pressure. The first level of support in this scenario is the recent low at 18540, followed by the cycle low at 17592.
Should we see BTC continue to rally then the next level of resistance clocks in around the August high of 25212 and the May low at 25401. If price reaches that point it will be a pivotal test as a higher high could be the first sign of a meaningful trend change, whereas a failure to trade to a new swing-high keeps the downward track well in place.
BTC/USD Daily Chart
ETH/USD chart isn’t as clear as BTC/USD. It is currently trading around the important 1700 level that extends back to 2021. There is a big trend-line off the high a bit higher, and may be in confluence with the 200-day MA at 2079. The first level of support to watch is around 1424, then 1356, 1000, then the cycle low at 880.
ETH/USD Daily Chart
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—Written by Paul Robinson, Market Analyst
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