Futures analysis: buyers defended key support levels

Last week, cryptocurrency prices bounced off key support levels: $32,000 for Bitcoin, and $2,300 for Ethereum. Nevertheless, this does not signify an immediate continuation of the bullish trend.

Why price growth looks weak, and how the situation will unfold? We analyse the trends and price levels of Bitcoin and Ethereum with the support of the cryptocurrency exchange Bybit.

BTCUSD

The cryptocurrency market has recovered from May’s price drop. On June 8, sellers could not push Bitcoin below $32,000, after which it rose to $41,000.

The RSI indicator has entered the overbought zone, signalling a possible pullback in price.

Short-term outlook

Buyers on BTCUSD have broken the downtrend that has held Bitcoin’s chart since mid-May. The current price rise may end near the resistance at $41,000.

What is worrying is that Bitcoin’s price broke the bearish trend without a rise in trading volumes. This, together with RSI in overbought territory, points to a likely rebound to $35,000 in the coming days.

Medium-term outlook

Buyers defended a key support level and established a pronounced bullish trend. It seems they are gathering strength before breaching the resistance at $41,000.

Watch the resistance level and the trend. The bullish trend will be confirmed if Bitcoin’s price bounces off the upward-trend line and again meets the resistance at $40,000. Such a move would form an ascending triangle, which in most cases ends in a price rise.

In the worst case, sellers will breach the uptrend, and Bitcoin’s price will drop to local support at $35,000. Such a fall and subsequent trading in the corridor between $35,000 and $38,000 are unlikely to last more than a week.

ETHUSD

On 12 June, the RSI moved out of the oversold zone, and Ethereum’s price tested resistance at $2,500. The rebound from the support level, however, was not as strong as Bitcoin’s.

During the rise to $2,500, ETHUSD trading volume did not increase. This points to a potential reversal and a fall to $2,300.

Short-term outlook

Buyers breached the local downtrend, but the price rise ended near the first resistance level.

Likely, Ethereum’s price will rebound to the medium-term uptrend line and continue to rise.

Medium-term outlook

Most likely, ETHUSD will continue to trade in a range between $2,300 and $2,600 over the next week. A rebound from the medium-term uptrend line could provoke a breach of the $2,600 resistance and a short-term rise to $2,800.

Conclusions

For now, with no major news in the cryptocurrency industry, prices will trade in wide ranges. Bitcoin and Ethereum are unlikely to breach key support and resistance levels without a substantial rise in trading volumes.

For short-term and intraday traders, it is simpler. In such conditions, one can trade on rebounds from the levels.