January 24, the price of Bitcoin established a local low at $32,903. It was followed by a rapid rebound to above $37,000. At the time of publication, the first cryptocurrency is trading around $36,000, and Ethereum — $2,400.
Can the crypto market recover in the current environment? We analyse the price levels of Bitcoin and Ethereum on the Bybit cryptocurrency exchange.
BTCUSD
Last week, bears managed to breach the $40,000 level, leading to a rapid slide to around $34,000.
If the negative momentum persists, the next important support level for BTCUSD will be $30,000. In July 2021, a rise from this level started the ascent to the all-time high of $69,182.
Although Bitcoin fell by 20% last week, there remains a chance of a rebound to $40,000. If the former support level is not successfully retested, bears could resume the downtrend with targets below $30,000.
ETHUSD
The ETHUSD market has also regained some ground. After hitting a low at $2,155, the price rose to around $2,500.
If the downside momentum persists, Ethereum could test the psychological level of $2,000. The next strong support zone sits around $1,700.
Conclusions
Last week, buyers could not defend key support levels—$40,000 for Bitcoin and $3,000 for Ethereum. However, the ongoing market rebound suggests that bulls may once again test these levels.
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