Futures analysis: Bulls defend a key support level

After a 20% correction last week, Bitcoin and Ethereum were unable to recover meaningfully. At the time of publication, they were trading at around $45,000 and $3,300 respectively.

Can we talk about the onset of a bear trend in the current environment? We analyse the price levels of Bitcoin and Ethereum on the cryptocurrency exchange Bybit.

BTCUSD

Last week Bitcoin tested the 21-week moving average (MA) and the $42,600 level.

Since April 2020, the 21-week MA has acted as solid support during the rise of BTCUSD from $8,000 to the all-time high of $64,990. A break below the moving average in May 2021 reinforced the downtrend, sending the price down to levels below $30,000.

Maintaining the price above the 21-week MA would indicate a possible continuation of the bullish market with prospects for new all-time highs.

A breach of $42,000 and a hold below this level could trigger a downward move toward the $37,500 mark.

ETHUSD

After testing support at $2,950, the price of ETHUSD is in a sideways range. If this support is breached, one could expect further downside for the asset toward the psychological $2,500 level.

Conclusions

Following the September 7 correction, Bitcoin and Ethereum have been in a sideways trading range. If the bulls can keep Bitcoin above $42,000, the prospects for moving toward new all-time highs remain.

If it settles below the 21-week MA, the probability of Bitcoin returning to the $40,000-$30,000 trading range increases, with the potential for fresh lows below $28,700.

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