BTC: Breaking short-term trendline
In the weekly chart, BTC has broken the short-term trendline (formed from January 2023 until now) after testing the SMA 100 week and reversing afterwards.
At the same time, the MACD indicator has given a sell signal in a bearish divergence state, and the MACD line is retreating towards the 0 threshold. This indicates that the short-term outlook for BTC is not optimistic.
Currently, the SMA 50 week is acting as support (equivalent to the range of 24,500 – 26,500 USD). The writer believes that the risk will increase if BTC loses this important support level in the near future.
BTC chart in the period 2020 – 2023. Source: TradingView
ETH: Falling below the SMA 50 week
In the correction phase from late 2021 to early 2022, the trendline provided strong support for the price. However, this level was later broken and ETH fell into a deep correction.
On the other hand, from June 2022 until now, ETH has been moving within an uptrend channel, and the lower channel line will serve as a strong support for ETH.
According to the weekly chart, ETH has fallen below the SMA 50 week. This indicates a negative outlook for ETH in the end of the year. It will also be a strong resistance for ETH in the future.
The death cross between the SMA 50 week and SMA 100 week has appeared since October 2022 and has been maintained until now.
The writer expects the correction process of ETH to continue for a while. Therefore, investors should be cautious when trying to bottom fish at this price range.
ETH chart in the period 2020 – 2023. Source: TradingView
Technical Analysis Department, Vietstock Consulting Office
