Futures analysis: bears intensify pressure on Bitcoin

On 2 November, the U.S. Federal Reserve (the Fed) raised the target range for the federal funds rate by 75 basis points. Bitcoin reacted with a modest decline, but by the next day prices began to rise, and on Friday they breached the $21,000 level.

However, at the start of this week the price of the first cryptocurrency fell below $21,000 and plunged below $20,000. At the time of writing, Bitcoin was trading around $19,800, and Ethereum — below $1,500.

Will the market continue to fall? We analyse the price levels of cryptocurrencies on the Bybit exchange.

BTCUSD

After reaching a local high of $21,468 on November 5, Bitcoin began to fall rapidly, ending a three-week uptrend from $19,000.

For the rally to continue, Bitcoin must reclaim and consolidate above $20,000. If it remains below this psychological level, the next support stands at $19,000.

ETHUSD

On November 4, Ethereum price carried out a retest of the resistance at $1650, but could not settle above that level.

To resume the uptrend, ETHUSD must overcome the $1650 resistance. If Bitcoin stays below $20,000, there could be another test of support at $1,400.

Conclusions

Bitcoin and Ethereum failed to break above resistance at $21,500 and $16,500 respectively. For the uptrend to continue, Bitcoin must reclaim above $20,000.

If Bitcoin consolidates below $20,000, a retest of support around $19,000 is possible, as well as $1,400 on the Ethereum market.

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