After commenting on the positive close of the crypto market this week, this article will focus on the technical price analysis of Bitcoin (BTC) and Ethereum (ETH).
Bitcoin and Ethereum price analysis
The second week ends higher for the second consecutive time, managing to reverse the balance from the beginning of the month.
September is a month that statistically turns out to be the most difficult month of the year.
A choral rise that among the top 100 largest capitalization registers only one negative sign, that of the Nexo token (NEXO), a centralized lending platform operational since 2018, in weekly loss of 5%.
This generalized positivity helps drag the opening of the new week into the positive.
Among the blue chips, the best is Solana (SOL), which since the beginning of the day has been dancing over double digits, recovering the $38 threshold abandoned 19 August. A level that in the past has repeatedly proven to be a battleground between bears and bulls.
Contrasting trends for the top two in the class, with Bitcoin rising more than 2% by mid-day, while Ethereum drops more than 1%. A difference that allows BTC to make up the gap from the climb accumulated by ETH last week.
Bitcoin (BTC) – technical analysis
The weekend brought bullish technical confirmations hypothesized in Friday’s previous update.
The consolidation of the double technical and psychological threshold of USD 20,000 built the foundation to push prices above $22,000 for the first time since 19 August.
With that of today, it becomes 6 consecutive upward daily candles. A trend that over the past year was only seen at the end of March, when the price of BTC marked the high of the year at $48,190.
With current technical conditions, the probability of the current monthly cycle beginning with the recent low on Wednesday, 7 September, increases by more than 80%.
If correct, the bullish trend will push prices to new period highs within the next few days, confirming the recovery of prices back to the $23,000 area.
Should this not happen with swing below $20,000 for more than 48 hours, it will become wise to lighten upward positions.
In fact, at this stage of the market it is necessary to find confirmations to the upside, where any minimal retracement becomes a buying opportunity for the medium term.
Ethereum (ETH) – technical analysis
For ETH, on the other hand, the next few days should have a prevalence of weakness in line with the closing of the monthly cycle that began on 29 August.
A monthly cycle with a decidedly bullish structure, which in its closing phase finds room for even a major retracement in the short term.
A possible retreat of prices up to the $1,500 area does not compromise the solid bullish structure built in recent weeks.
In the case of a breach of the $1,800 area before next Thursday, the cyclical setting would indicate a cycle truncation and the beginning of a new monthly cycle with a firm bullish setting.
In the coming weeks, it is necessary for prices not to return below the $1,450-$1,400 area, levels that indicate the lows of late August. In that case, it would end the bullish phase started last July.
Source: https://en.cryptonomist.ch/2022/09/12/technical-analysis-price-ethereum/