BTC/USD, ETH/USD, ETH/BTC: Technical Outlook, Edition #39 (02/07/21)
Pre-Weekend Gameplan: Buyers continue to fight with conviction, sellers unrelenting in applying downward pressure on BTC price-action. Don't miss the key things to watch in the weekend ahead
Bulls and bears struggle for dominance, uncertainty weighing heavy on BTC price-action
Bitcoin appears somewhat tentative as it hovers around USD 33K - the battleground where buyers attempt to resist a daily close below USD 31K.
Meanwhile, sellers defend against a D1 close above USD 35K.
Should the price break above USD 35K and continue up to USD 44K (D1, 200MA), this range of approximately USD 4K will determine a potential bottom on Bitcoin.
Otherwise, we can consider this a pit stop for the bears as they refuel before another barrage of sell-offs.
The H4 BTC/USD chart below depicts this USD 4K range and a potential parallel flag forming.
Bitcoin, BTC/USD - 4 Hour (H4)
Ultimately, bulls need a close above the .618 Fibonacci zone at USD 37K.
Bears, on the other hand, require a close below USD 31K.
Bulls may want to keep long entries staggered, or at least hedged with some form of short exposure if considering a buy position.
Conversely, Ethereum looks slightly more confident with a bullish reversal.
We can see the ETH/USD trading pair approach a .618 retracement level around USD 1.94K, the .5 level also looking tempting at USD 2K.
Ethereum, ETH/USD - 4 Hour (H4)
Ethereum vs. Bitcoin, ETH/BTC - Daily (D1)
Bulls and bears are causing a ruckus as they fight it out for dominance.
While we watch the brawl, it may be wiser to turn our attention elsewhere.
If the ETH/BTC pair manages to put in a higher low around 0.06/BTC, then this may provide a better alternative to longing BTC/USD.
See you again for the next update. - q
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