Bitcoin and Ethereum endured one of their biggest and sharpest drops of the year over the weekend, which caught many crypto holdres by surprise. Newwavve Traders have been tracking this possibility for some time and were able to capitalize on the volatility. Here is our outlook coming up:
BITCOIN
Bitcoin broke through it's support area around 55K and tumbled all the way down to 40K where it was quickly bought back up and found support again at 46K. The quick buy up is encouraging for the bulls, but bitcoin is not out of the wood yet as it faces stiff resistance at the previous 50K support level. Should it break through there, look for it to retest those level and potentially climb to all-time highs. Should it bounce off that level, potential lows could be close to 20K.
ETHEREUM
Ethereum fared much better than Bitcoin did in the drop, though it still fell sharply. The encouraging news for ethereum however, is the ETH-BTC pairings that show that Ethereum may be gaining momentum over Bitcoin should BTC stall in its bull run. This gives investors some encouragement that ETH still may have some significant gains in the short-term. With that said, ETH still faces the same sell pressure that BTC has at the 4500 price point. If ETH can breakthrough and retest that level, it would have clear skies for significant all time highs. Should it fail in its bid to breakthrough, the bear would have more momentum to push ETH lower to potentially retest the 2000 price levels.
For a better understanding of how the markets could move and how best to capitalize on the volatility, check out this week's technical analysis video:
