Futures Analysis: Bears Return to the Markets

Negative momentum in the stock markets has spilled over into cryptocurrencies. Against the backdrop of debt problems of the Chinese developer China Evergrande Group, global indices fell by 1% to 3.6%. On September 21, Bitcoin and Ethereum fell to $40,100 and $2,800 respectively.

Where will the current correction stop? We analyse the price levels of Bitcoin and Ethereum on the cryptocurrency exchange Bybit.

BTCUSD

On September 20, Bitcoin tested the $42,600 level. At the time of publication, the asset was trading around $42,900. If the price settles below this level, a decline of BTCUSD to the next support at $37,500 can be expected.

If the level of $37,500 holds, expect the asset to move sideways in a trading range of $37,000-$40,000 with the aim of testing the resistance at $50,000 again.

However, if the negative momentum in stock markets persists, a continuation of the downtrend with a retest of support in the $30,000 zone becomes more likely.

ETHUSD

At the time of publication, ETHUSD holds the psychological level of $3,000. If breached, the next important support will be at $2,500.

Conclusions

Bitcoin and Ethereum continue to battle to hold the $42,600 and $3,000 levels respectively, but their repeated testing signals weakness among buyers.

If they close below these levels, the probability of Bitcoin dropping to the $37,500 support increases.

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