Bitcoin & Ethereum Jump: BTC/USD & ETH/USD Price Action – DailyFX

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Note: Low and High figures are for the trading day.
Note: Low and High figures are for the trading day.
Note: Low and High figures are for the trading day.
Note: Low and High figures are for the trading day.
Note: Low and High figures are for the trading day.
Note: Low and High figures are for the trading day.
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Bitcoin’s rise to a minor resistance at the mid-September high of 27500 raises the odds that the two-month-long decline could be over. This follows a hold above strong support at the June low of 24750, which has kept intact the higher-top-higher-bottom formation since the end of 2022. Importantly, this keeps alive the possibility of a further recovery given the sharp 2021-2022 decline.
BTC/USD is now testing a key ceiling at the end-August high of 28150, coinciding with the 200-day moving average. A decisive break above could clear the path toward the July high of 31800, which could be a defining moment for Bitcoin. Any break above would not only trigger a double bottom but would reinforce the bullish medium-term trajectory, first highlighted earlier this year – see “Bitcoin Technical Outlook: BTC/USD Turns Bullish”, published January 18.
Chart Created by Manish Jaradi Using TradingView
The potential price objective of the double bottom pattern (the June and the September lows) works out to around 39000. Such a move would imply a break above the 89-week moving average and a cross above the upper edge of the Ichimoku cloud on the weekly charts – for the first time since 2022. For the bullish view to unfold, BTC/USD needs to stay above the June low of 24750.
Chart Created by Manish Jaradi Using TradingView
Ethereum’s break above the mid-September high of 1670 appears to have reduced immediate downside risks. This follows a hold above a crucial floor at the August low of 1535, not too far from the lower edge of a declining channel since early 2023.
Chart Created by Manish Jaradi Using TradingView
ETH/USD is now testing a fairly strong resistance area. This includes the end-August high of 1745, the upper edge of the Ichimoku cloud on the daily charts, and the 200-day moving average. Ethereum needs to break above 1745-1805 for the medium-term recovery trajectory to play out. So far, ETH/USD has been holding above significant long-term support on the 200-week moving average – despite the weakness since 2021, ETH/USD hasn’t decisively fallen below the average.
If this morning’s rebound is indeed a turning point for cryptocurrencies, ETH/USD needs to hold above the stiff support at 1450-1550.
— Written by Manish Jaradi, Strategist for DailyFX.com
— Contact and follow Jaradi on Twitter: @JaradiManish
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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