Bitcoin (BTC) could not stay in the $21,000 range in the weekend’s trading. The sell-off that started yesterday has caused Bitcoin to test a critical support level today. Ethereum (ETH) once again failed to break the resistance at $1,650 as sellers moved over the weekend.
Will Bitcoin maintain its trend?
Bitcoin continues to form higher peaks in the short term with increased demand in the last week of October.
Finally, Bitcoin, which rose to $21,460 in weekend trading, tested the resistance area in the $21,100-$21,800 range. With sellers concentrated in this area, Bitcoin closed the week at $20,900 with a drop of nearly 2% yesterday. The BTC/USD pair, which started the new week with a light seller, is struggling to hold the $20,800 support today.
Currently, the $20,600-$20,800 range can be followed as an important support area for BTC according to various technical opinions. First, the short-term uptrend line coincides with this area, and is an important support. On the other hand, the value of the 3-month exponential moving average, which acted as dynamic resistance on October 26-30, is acting as support for BTC at $20,800 today. Also, the 0.5 Fibonacci value at $20,600 shows that this area is another important support area.
If bitcoin buyers can focus on this area this week, BTC, which is now forming a wedge pattern, could reverse and head towards the upper line at $21,800. In this way, the $21,100 level can act as an intermediate resistance.
On the other hand, a close below the support zone might test the second support zone in the $20,150-$20,300 range. However, a drop to this area would negate the short-term uptrend, increasing the potential for BTC price to be stimulated below $20,000.
The most important development during the week will be the inflation rates in the US, which will be announced on Thursday of this week. This data, which will also be priced in the cryptocurrency markets, is likely to increase volatility, and a higher than expected 8% annual inflation could trigger a drop in the markets. An inflation figure that may be in line with expectations can be priced favorably in the market.
Recent developments in the cryptocurrency industry can also affect the price of Bitcoin. Therefore, the market will be following developments related to the FTX exchange closely throughout the week.
Ethereum is turning sideways
Ethereum broke the short-term downtrend and rose to the $1,660 level on the last working day of the week. In the weekend’s trading, it rebounded from this important resistance level once again.
According to the last position, Ethereum is showing sideways movement in the $1,550 – $1,650 range. While testing the lower boundary of this range today, we note that the cryptocurrency, which started today with a slight selloff, is still supported above this value.