On December 4, Bitcoin and Ethereum fell to around $41,274 and $3,367 amid nerves over the emergence of a new COVID-19 variant and Fed Chair Jerome Powell’s call to taper the bond-buying program.
At the time of publication, the cryptocurrencies had recovered to $51,000 and $4,300 respectively. Is a continuation of the correction possible? We analyse the price levels of Bitcoin and Ethereum on the Bybit cryptocurrency exchange Bybit.
BTCUSD
After an impulsive drop on December 4, the bulls managed to defend the $49,000 support level and close the daily candle above this mark. The bears attempted to push the level on December 5 and 6, but met strong resistance from buyers.
The current price recovery of BTCUSD may stall under the rising trendline, which formed at the lows of $29,500 and $40,700. A weekly close above $52,500 would be a signal for further growth.
If the bulls hold the price above $49,000, Bitcoin could test support again in the $42,000 zone.
ETHUSD
On December 4, Ethereum buyers held the price above the uptrend line.
Ethereum shows a stronger rebound: the asset’s price has risen 30% from the $3,367 low, while BTCUSD rose 24% from $41,274.
Conclusions
After a 20% drop over the weekend, Bitcoin and Ethereum are showing a solid recovery.
Perhaps the December 4 sell-off marked the culmination of three weeks of Bitcoin selling from $66,000. The current rebound could end by reaching new all-time highs.