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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