Bitcoin, Ethereum Technical Analysis: BTC Bounces Back After Monday’s Selloff

Following Monday’s selloff, cryptocurrency markets mostly rebounded across the board, with bitcoin and ethereum prices rallying by as much as 10%. Overall the global crypto market cap was over 6% higher from yesterday’s session.

Bitcoin

Bitcoin, which fell to an intraday low of $33,184.06 during yesterday’s session, was up close to 9% as of writing, hitting a high of $37,247.52 in the process.

After a false breakout from its support level of $34,170 to start the week, today’s move saw BTC/USD climb from this point, with some anticipating the potential for a rally towards resistance of $40,000.

Looking at the chart below, BTC bulls appear to have re-entered as many expected at this level, similar to July’s move, however with the RSI still oversold, many remain skeptical of a full scale bull run.

BTC/USD – Daily Chart

Now that the short-term 10-day EMA (red) has somewhat eased its downward momentum, traders will be anticipating a potential reversal, as the chances of the upward cross gradually increase. One thing to consider is whether we are seeing long-term bitcoiners buying the dip.

Ethereum

In the last seven days ETH has fallen over 20% in value, however Tuesday saw a slight easing of this bearish pressure, as bulls re-entered the race.

As of writing, ETH/USD rose to an intraday high of $2,463.59, after almost falling below $2,000 on Monday, recording its lowest rate since July as a result.

Looking at today’s chart, it appears to show that ETH has found an interim floor, despite the long-term descending triangle hinting at further downside pressure.

ETH/USD – Daily Chart

Similar to BTC, Ethereum price action is still oversold, however as it gradually moves towards the 30 RSI level, the question is if we will see bullish sentiment begin to increase.

What are your thoughts on the current market conditions? Let us know in the comments below.

eliman@bitcoin.com'
Eliman Dambell

Eliman brings a diversified point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.




Image Credits: Shutterstock, Pixabay, Wiki Commons

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