A widely followed crypto analyst is laying out the support levels both Bitcoin (BTC) and Ethereum (ETH) need to hold to recover from the market’s most recent downswing.
The pseudonymous trader known as Rekt Capital tells his 327,000 Twitter followers that the leading smart contract platform could close as low as $1,550 and still recover.
“ETH is now dipping in an effort to successfully retest this orange area as support.
Hold orange as support & ETH will be able to move towards $2250 (black).
Downside wicking to ~$1550 would be fine as long as ETH weekly closes inside this current orange area.”
Ethereum is changing hands for $1,694 at time of writing, a 9.1% dip in the last 24 hours.
The analyst then says that the top crypto asset by market cap has lost its support at the 200-week moving average due to the latest crypto market downturn, but that recovery is possible as a relief bounce could flip that area into new resistance.
“After successfully [retesting] the 200-week moving average on weak buy-side volume, BTC has now broken down from this support.
Weekly Close below the 200-week moving average will confirm the breakdown.
If BTC indeed confirms a breakdown from the 200-week moving average…
Then it is possible that a relief bounce into the 200-week moving average to flip it into new resistance could take place. The 200-week MA represents the price point of ~$23200.”
Bitcoin is trading for $21,345 at time of writing, an 8.8% drop in the last day.
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