Bitcoin (BTC/USD) appreciated early in today’s Asian session as the pair moved higher to the 7499.99 area after being supported around the 7261.93 area during yesterday’s North American session. The pair’s movements this week suggest traders have been repricing market risk in a Bearish manner, speculating BTC/USD’s price could continue to weaken. One indication of this weakness was the pair’s move below the 7198.05 area, a level that represents the 50% retracement of the move from 6526.00 to 7870.10. Bids emerged around the 7084.98 area after this level was challenged, an area that represents the 23.6% retracement of the 19891.99 – 3128.89 range. Downside price objectives related to this range include the 7039.45 and 6843.21 levels, the 61.8% and 76.4% retracements.
Another important level that traders are watching is the 6899 area, a downside price target related to the pair’s late-October high around the 10540.49 area. If the 6899 area is tested, the downside risk of a move to the 6038 area will increase substantially. As traders continue to reprice risk, some other important technical levels will take on greater importance. Above the market, traders will continue to evaluate the market’s behaviour around the 7343 area. Below the market, traders will focus on the 6538, 5733, and 4738 areas as downside price targets.
Price activity is nearest the 50-bar MA (4-hourly) at 7,420.98 and the 200-bar MA (Hourly) at 7,425.74.
Technical Support is expected around 6775.47/ 6653.57/ 6323.42 with Stops expected below.
Technical Resistance is expected around 7870.10/ 8062.04/ 8338.78 with Stops expected above.
On 4-Hourly chart, SlowK is Bearishly below SlowD while MACD is Bullishly above MACDAverage.
On 60-minute chart, SlowK is Bullishly above SlowD while MACD is Bullishly above MACDAverage.
Ethereum (ETH/USD) gained ground early in today’s Asian session as the pair climbed to the 148.47 area after encountering buying pressure around the 143.80 area during yesterday’s Asian session. During this week’s price activity that has led to a weaker ETH/USD, traders have pushed the pair below the 144.77 area, a level that represents the 50% retracement of the move from 131.80 to 157.73. This downward price pressure has opened up some additional downside price levels including the 141.71 area and the 137.92 area, representing the 61.8% and 76.4% retracement levels of the same range. The downward price pressure also increases the likelihood that recent areas of technical Support including the 149.31 area could likely become technical Resistance.
During this repricing of risk, the 141.02 level is taking on greater technical significance as it is the low print from 27 October. This level’s technical significance was subsequently confirmed multiple times based on price activity when Stops were elected above the 151.17 and 155.74 areas, upside price objectives. Notably, the pair derived some technical Support around the 146.59 area for a few trading sessions through the middle of this week, another indication that traders will be paying very close attention to the 140.94 area. Below that area, the 137.80 area represents the pair’s low print from 22 November and will also be closely monitored for technical Support.
Price activity is nearest the 50-bar MA (4-hourly) at 149.89 and the 100-bar MA (Hourly) at 147.66.
Technical Support is expected around 144.77/ 141.74/ 140.61 with Stops expected below.
Technical Resistance is expected around 152.11/ 155.50/ 162.93 with Stops expected above.
On 4-Hourly chart, SlowK is Bullishly above SlowD while MACD is Bullishly above MACDAverage.
On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bullishly above MACDAverage.