BTC/USD, ETH/USD Technical Outlook:
- BTC/USD exited the channel/bear-flag, but there is a question of bounce
- The trend-line of the record high is currently being challenged
- ETH/USD is trading near the crucial 1700 level
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BTC/USD broke out of a channel/bear-flag at the end of last month, and on that it appeared ready for a new low cycle. However, it found support around 18600, with the price now moving back inside the channel and challenging an important range.
The trend-line falling below the record high is currently being tested and could act as a meaningful source of resistance if BTC fails to climb higher. There are two connecting points (obviously the minimum to form a trend-line), and so if we see this acting as resistance this will be the first validation of the level.
A downside break from the trend-line would be considered as an indication that the ongoing bear market is ready to exert more downside 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 that BTC continues to rally, the next level of resistance is near the August high of 25212 and the May low of 25401. If the price reaches that point it will be a significant test as a higher high can be the first sign of a meaningful trend change, while failure to trade a new swing-high may well keep the downward track.
BTC/USD Daily Chart
BTC/USD chart by TradingView
The ETH/USD chart is not as clear as BTC/USD. It is currently trading around the crucial 1700 level which extends to 2021. The higher trendline is slightly higher, and may be in a confluence with the 200-day MA at 2079. The first level of support to watch is around 1424, then 1356, 1000, then cycle lows at 880.
ETH/USD Daily Chart
ETH/USD chart by TradingView
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