Key Insights: – Bitcoin (BTC) and Ethereum (ETH) are up through the morning, with the pair looking to consolidate Monday’s bullish session.- However, a busier US economic calendar could test buyer appetite, with US economic indicators and FOMC member chatter in focus.- While technical indicators remain bearish, the EMAs show signs of a possible near-term bearish trend reversal.On Monday, bitcoin (BTC) rose by 3.76% to end the day at $20,307.A bearish start to the week saw BTC fall to an early low of $19,557 before striking a late high of $20,415.Ethereum (ETH) rallied 8.76% to end the day at $1,552.Tracking the broader market, ETH slid to a new August low of $1,421 before striking a final hour high of $1,560.After an initial hit from the NASDAQ 100 Mini at the turn of the day, BTC and ETH decoupled from the NASDAQ 100 to reverse losses from the Sunday session.
A quiet US economic calendar allowed dip buyers to snap up cryptos at depressed prices after the broader market fall to new August lows in response to Fed Chair Powell’s speech.However, it is a different story today, with the crypto market needing to navigate the US economic calendar.US consumer confidence and JOLTs job openings will be the key stats of the US session.FOMC member chatter will also need consideration.Hawkish Fed chatter and positive stats would support the Fed Chair’s monetary policy plans to bring inflation to target.From the crypto wires, progress towards Cardano’s Vasil hard fork and the Ethereum Merge are crypto market positives.However, uncertainty lingers over the outcome of the SEC v Ripple (XRP) case and what impact an SEC victory would have on the crypto market.Investors need to track any court decision on William Hinman’s speech-related documents.
A ruling in favor of Ripple would be crypto-positive.Bitcoin (BTC) Price Action At the time of writing, BTC was up 0.51% to $20,589.
A mixed morning saw BTC fall to an early low of $20,131 before rising to a high of $20,589.Technical Indicators A BTC hold above the $20,093 pivot would support another run at the First Major Resistance Level (R1) at $20,629.BTC needs broader market support to break out from the morning high of $20,589.An extended crypto rally would see BTC test the Second Major Resistance Level (R2) at $20,951 and resistance at $21,000.The Third Major Resistance Level (R3) sits at $21,809.A fall through the pivot would bring the First Major Support Level (S1) at $19,771 into play.
Barring an extended sell-off, BTC should steer clear of sub-$19,000.The Second Major Support Level at $19,235 should limit the downside.The Third Major Support Level (S3) sits at $18,377.Hawkish FOMC member chatter and positive JOLTs job openings align with Fed Chair Powell’s policy outlook, which would bring support levels into play.Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal.This morning, bitcoin sat below the 50-day EMA, currently at $20,790.
The 100-day EMA pulled back from the 200-day EMA, with the 50-day EMA easing back from the 200-day EMA, delivering bearish price signals.For the bulls, a BTC move through R1 ($20,629) would bring the 50-day EMA ($20,790) and R2 ($20,951) into view.
Ethereum (ETH) Price Action At the time of writing, ETH was up 2.18% to $1,586.A mixed start to the day saw ETH fall to an early low of $1,524 before rising to a high of $1,606.ETH tested the First Major Resistance Level (R1) at $1,601 early on.
Technical Indicators ETH will need to hold above the $1,511 pivot to retarget the First Major Resistance Level (R1) at $1,601 and the morning high of $1,606.However, today’s US economic indicators and FOMC member chatter will need to be crypto-market friendly to support a return to $1,600.In the case of an extended rally, ETH will likely test the Second Major Resistance Level (R2) at $1,650 and resistance at $1,700.The Third Major Resistance Level (R3) sits at $1,789.A fall through the pivot would bring the First Major Support Level (S1) at $1,462 into play.However, barring another sell-off, ETH should avoid sub-$1,400 and the Second Major Support Level (S2) at $1,372.The Third Major Support Level (S3) sits at $1,233.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal.Ethereum sat at the 50-day EMA, currently at $1,578.The 50-day EMA flattened on the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA to deliver mixed signals.An ETH move through R1 ($1,601) would give the bulls a run at the 100-day EMA ($1,635) and the 200-day EMA ($1,640).A breakout from the 200-day EMA would bring $1,700 into play and signal a possible near-term bearish trend reversal.However, a fall through the 50-day EMA would bring support levels into play..
