{"id":57596,"date":"2022-08-29T11:14:55","date_gmt":"2022-08-29T15:14:55","guid":{"rendered":"https:\/\/www.ino.com\/blog\/?p=57596"},"modified":"2022-08-29T11:17:22","modified_gmt":"2022-08-29T15:17:22","slug":"bitcoin-and-ethereum-no-safety-net","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2022\/08\/bitcoin-and-ethereum-no-safety-net\/","title":{"rendered":"Bitcoin and Ethereum: No Safety Net"},"content":{"rendered":"

Earlier this month, I updated on the crypto market with a title, 'It Ain't Over Yet\"<\/a>. I considered the recent strength in the main cryptocurrencies a \"dead-cat bounce\" within a classic sideways consolidation with a high probability of resuming collapse. <\/p>\n

This time, I spotted new signals as the chart moves to the right building new bars over time. Let us start with the main coin in the weekly chart below.<\/p>\n

\"Bitcoin<\/a>
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Source: TradingView<\/em><\/center><\/small><\/p>\n

The price of Bitcoin moves within large bearish trend channel (black). The top of above-mentioned sideways consolidation within red trendlines did not even approach the resistance, it stays intact. <\/p>\n

The RSI indicator could not raise its head to test the \u201cwaterline\u201d of 50 level. This means that the market has considered this short-term strength as a \"dead-cat bounce\" as well. <\/p>\n

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The chart bar of last week has punctured below the red support. This is a harbinger of another drop. The main coin indeed is looking into the abyss as the strong support appears only after the price halves down. The largest area of the Volume Profile histogram (orange) is located between $9k and $10k. The mid-channel (red dashed) fortifies that support with its intersection.<\/p>\n

Your biggest bet last time was the drop of the Bitcoin down to $12.2k, where the second leg down is equal to the first one<\/a>. It almost coincides with the above-mentioned double support.
\nThe next volume area is located at the $4k level and this option was your least favorite.<\/p>\n

This time I added the simple moving average (purple) covering the preceding 52 weeks (1 year). It has been offering a strong support to the price starting from 2020. This year it has flipped to become a strong resistance after the price has dropped below it. The $40k level is the barrier to break to confirm the new bullish cycle. <\/p>\n

A rather interesting situation has developed for the main coin. The price should either half down to find support or it should double up from this level to crack the bearish cycle. <\/p>\n

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Where do you expect the price of Bitcoin will go?<\/strong><\/p>