Crypto markets are selling off in the wake of the US CFTC lawsuit against Binance. Technical traders are concerned that there could be more falls.
In a recent episode of The Crypto World channel, host Josh discussed current market conditions for both ethereum (ETH) and bitcoin (BTC), highlighting bearish divergence and resistance challenges.
Here’s a breakdown of the key takeaways from his analysis.
(embed)https://www.youtube.com/watch?v=z5q5XYlmWSQ(/embed)
Josh reported that ethereum is experiencing a bearish divergence, breaking below its short-term support. He encouraged his audience to stay tuned for more analysis on this trend. Ethereum is currently facing rejection from a resistance range of $1,770 to $1,820.
If the price continues to fall, support between $1,650 and $1,700 is expected to hold. A break below the short-term support level of $1,730 would signal a bearish turn, leading to further pullback.
Bitcoin, on the other hand, is facing rejection from a resistance range of $28,000 to $29,500, signaling a short-term pause or reversal of its uptrend. If the price sees a further pullback, the support area between $24,000 and $25,200 is expected to provide significant support for the cryptocurrency.
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The bearish divergence is also evident on the bitcoin to eurodollar chart, as lower short-term highs are constantly being made. This is a sign of weakness in the cryptocurrency, which may lead to further declines in the near future.
Josh also noted that the funding rates for all coins on all exchanges are turning into negative territory. This negative change in funding rates encourages traders to short bitcoins. The development indicates a potential shift in market sentiment, as traders position themselves on the possibility of a lower price move.
As ethereum and bitcoin face resistance and bearish divergences, the host thinks more downside is possible. For ethereum, support ranges from $1,650 to $1,700, which is a critical level to monitor.
If Ethereum breaks below its short-term support of $1,730, it would indicate a downtrend and could trigger further declines. For bitcoin, investors should watch the support area between $24,000 and $25,200. If the cryptocurrency falls below this range, it could face additional selling pressure and continue its downtrend.
Josh’s analysis on The Crypto World channel serves as a reminder that the cryptocurrency market can experience fluctuations and setbacks, even during an uptrend.
Both ethereum and bitcoin are currently facing resistance and bearish divergences, which could result in falls in the near term. The comments follow today’s report that crypto analyst The Crypto Lark sees Wyckoff’s scheme as a valuable analytical tool and shares his views on the bitcoin market in a recent YouTube video.
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