Last week, downside momentum in the market intensified — Bitcoin briefly slipped to $39 500, and Ethereum reached $2650. Nevertheless, the leading cryptocurrency held the psychological level of $40 000.
Is a recovery of the crypto market possible in the current environment? We analyse price levels for Bitcoin and Ethereum on the Bybit cryptocurrency exchange Bybit.
BTCUSD
On September 21, BTCUSD breached the $42 600 level: buyers absorbed the supply and did not let the price settle below. However the bulls’ strength was brief: three days later the cryptocurrency again fell to $42 600.
If $42 600 holds, one can expect the asset to rebound toward resistance at $45 000. If breached, the bulls’ objective will be to retest $48 000.
However, a more likely scenario is the continuation of the downtrend toward the support in the $37 000 zone.
ETHUSD
At the time of publication, ETHUSD was also testing resistance at $2950. If the asset cannot break through this level, the next support will be $2500.
Conclusions
Bitcoin and Ethereum are showing pronounced downside momentum. The tepid recovery of the first cryptocurrency after testing the $40 000 round-number suggests a lack of strong buyers in the market.
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