Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has again dipped below $8,000 level on the first day of the week. The larges cryptocurrency by market capitalisation is down 7% in the last 24 hours. The crypto market, on the other hand, has been very quiet over the weekend except for the President of the United States, Donal Trump signing into law the CLOUD Act. The bill is creating panic in the cryptocurrency space because it seeks to access more personal data belonging to the citizens in the name of improving security.
Bitcoin price could be reacting to the traders shifting sentiments because it is barely a week since Edward Snowden, the whistleblower revealed that The US National Security Agency has been monitoring the activities on Bitcoin blockchain. Signing the CLOUD Act into has done very little to remedy the growing concerns about privacy on Bitcoin (BTC).
Currently, BTC/USD is trading below the 50 and the 100 moving averages; both of which are gently sloping downwards to show that the sellers will continue to control the market in the short-term. Consequently, Bitcoin price is forming a stronger descending channel from the opening session on Monday. The 61.8% Fibonacci retracement level with the last high at $9,175 and $7,320 is now acting as the short-term resistance in the path recovery. The retracement level failed to halt the price during the recent declines.
The immediate support level for BTC/USD is at $7,800; however, there is a downside trend forming near $7,900. Bitcoin price must start to correct high and maintain this support level to avoid further declines. If the battered bulls continue to give way to the sellers and the price dips below $7,800, the next stop for Bitcoin price will be the primary support level at $7,500. On the upside, the bulls need a catalyst to provide anchorage for the trend reversal. Significantly, if Bitcoin BTC reaches the oversold territory and the bulls enter the market, the upside gains above the 61.8% Fibo will encounter increased resistance at the pivotal $8,000 level.
Ethereum (ETH) Price Analysis
Ethereum (ETH) price is plummeting without any significant reason. The the second cryptocurrency by market capitalisation is recording over 10% drop in price in the last 24 hours. ETH/USD opened trading on Monday at $525; however, the price started to dip immediately after to trade at lows of $480. The support level at $500 failed to hold during the decent, although short-term support was found at $485.
The price is currently exchanging hands below 50 simple moving average which meets the longer term $100 SMA at $529 to show that, Ethereum price will correct higher in the near-term above $500. The MACD momentum indicator is strengthening towards the negative to show that the selling activity will continue to rise. Sustained selling will cause a price overstretch for Ethereum to reach last week’s low at $452. Moreover, this could also be a signal for the buyers to enter the market.
On the path of recovery, Ethereum (ETH) price will encounter stiff resistance at $500 mark. The is also a barrier to the price and a break above this level will pave the way for more gains and $530 will be within reach. The 50 SMA acted as a support line during the trading on Monday morning, but now it will pose resistance during upside movement closer to $530.