Futures analysis: Bulls retreat, but do not surrender

Last week, Bitcoin and Ethereum reached record highs at $69,182 and $4,875 respectively. But then a decline began, intensified against the backdrop of news of President Joe Biden signing an infrastructure package without crypto amendments.

Could a rebound be possible in the current environment? We analyse Bitcoin and Ethereum price levels on the cryptocurrency exchange Bybit.

BTCUSD

On November 16, Bitcoin breached above the rising trend line that had provided support since October 28.

If $58,000 holds, a consolidation around this level can be expected with a subsequent rise to new highs above $69,000.

In the event of an impulsive breach of $58,000, the next strong support would lie at around $53,000.

ETHUSD

Ethereum likewise broke above the uptrend line at around $4,470 and, at the time of writing, found support near $4,230.

If the current downward momentum persists, Ethereum could retest $4,000. The next potential support on the ETHUSD chart would be around $3,680.

Conclusions

As Bitcoin and Ethereum approach the psychological levels of $70,000 and $5,000, many traders began booking profits, exerting significant pressure on asset prices.

For the rally to continue, the market needs to consolidate around strong support levels — $58,000 for Bitcoin and $4,000 for Ethereum.