Bitcoin and Ethereum analysis – BTC and ETH price on Monday, May 23, 2022

Like it or not, Bitcoin and Ethereum are clearly swimming in a bear market, since their respective ATHs in November 2021. Indeed, they have just validated their exits from tidy from the bottom. And to make matters worse, the total market capitalization of cryptocurrencies has come dangerously close to $1 trillion.

This analysis is offered to you in collaboration with Le Trading du Coin and its algorithmic trading solution.

Mistreated by an ever gloomy context, BTC and ETH could sink even further if further headwinds were to arrive. Nevertheless, and for the moment, the first two digital currencies have saved their supports, which should not be broken. In this, a technical rebound could take place. Provided that the current uncertainties on the financial markets show signs of easing.

Bitcoin – $30,000 Support Still Holds

If Bitcoin made history again with an eighth consecutive week in the redIt not remain that the $30,000 support still holds. Given the extent of the decline in Satoshi Nakomoto’s digital currency, sellers may be tempted to write off some of their profits. And it is very likely that the large low wick of the weekly candle of May 9 gave rise to an excess of nervousness, at least in the short term.

Weekly Bitcoin Price Analysis - May 23, 2022

In this sense, a technical bounce would offer some comfort to investors in the cryptocurrency sector. But in return, it would give potential sellers time to come back. And this especially when BTC prices find themselves near major resistances. Especially since the damage is done, because major bear market technical signals are not ready to be reversed anytime soon.

Firstly, Bitcoin prices remain far away from the shoulder-head-shoulder (ETE) neck line and the low of its tidy or horizontal channel (orange rectangle). And on the other hand, the evolution of the moving average at 30 weeks (MM30 weekly) leans primarily for a phase 4 of Weinstein. The latter well supported by the downward wave since the most recent failure below the resistance of $46,000.

From now on, any bounce towards the resistances of $35,000 or $38,000 would find a horde of sellers waiting for the precise moment to deliver the coup de grace.

Ethereum – The support of $1700 as a point of fall?

Ethereum just chained a seventh consecutive week of decline. But despite this sad historical record, the support at $1700 has been preserved. Support at this critical level which is largely explained by Bitcoin’s resistance around $30,000. And, in the case of some form of stability, it would not be excluded to see ETH following the technical rebound of Bitcoin.

Weekly Ethereum Price Analysis - May 23, 2022

However, Ethereum prices could quickly bump into the bottom of its range (orange rectangle). So much so that part of this rebound has already been consumed at the time of writing this analysis.. This despite the last week of decline. With, on the side of the MM30 weekly, a configuration that suggests a Weinstein phase 4. With a slide under the resistance of $3400 which testifies to a selling pressure being confirmed.

In a scenario where ETH prices return to its range (with the passing of $2300), cryptocurrency investors would not be at the end of their sentences. Because the descending line triggered since November 2021 and the resistance of $2800 would help block a favorable trend reversal.

BTC and ETH – Bear Markets Far From Overthrown

By putting the technical signals on the weekly charts end to end, the bear market for Bitcoin and Ethereum since their last respective ATHs does not suffer from any possible challenge. Not only are key reversal levels far away. But an easing of the current uncertainties on the financial markets would no longer be enough to rekindle this flame.

That is why the technical rebounds mentioned above risk leaving false hopes. Because the best thing to do seems to be to wait for a phase of capitulation. And unfortunately, it would probably go through the breakout of the next supports of BTC and ETH. Because by trying to maintain them at all costs (as is currently the case) buyers are simply indicating that they are in a desperate situation.

The fact that the correlation of BTC and ETH with the indices remains palpable definitely does not help to hope for a better outcome. Based on this observation, crypto investors should make up their minds until further notice. With the risk of another major drop that could resurface with excessive power. And as a result, trigger the successive disappearance of many projects, like the Internet bubble. And the prospect of seeing the cryptocurrency ecosystem fully express its potential at the end of this fateful outcome.

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