Bitcoin kicked off the week with an impulsive slide to a low of $45,555. Ethereum followed suit, slipping to $3,670. At the time of writing they traded near $48,400 and $3,800 respectively.
Will the market recover? We analyse the price levels of Bitcoin and Ethereum on the Bybit cryptocurrency exchange.
BTCUSD
Following a retest of the uptrend line dating from December 7, Bitcoin’s price repeatedly attempted to hold above $50,000, yet encountered substantial selling pressure.
If the downward impulse persists, the BTCUSD price could slide toward support in the $42,000 zone. Consolidation near this level could lay the groundwork for a new uptrend.
ETHUSD
The impulsive decline on December 13 broke through the $3,900 level, which had acted as strong support since November 26.
If ETHUSD cannot quickly push through $3900, expect a move down to $3400 with subsequent consolidation near that level.
Conclusions
The impulsive move lower on December 13 negated the market recovery that had begun last week.
Cryptocurrencies are seeking strong support levels to resume the uptrend. They may lie near $42,000 for Bitcoin and $3,400 for Ethereum.
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