Key Takeaways
Bitcoin is stuck between $21,500 and $21,000.
Meanwhile, Ethereum is trading between $1,250 and $1,190.
Closing outside these trading ranges will determine the trend’s direction.
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The cryptocurrency market had a quiet weekend as the top two assets by market cap, Bitcoin and Ethereum, continued consolidating. Still, a significant price movement appears to brew.
Bitcoin and Ethereum Primed for Volatility
Bitcoin and Ethereum remained stagnant over the weekend, but a few indicators suggest that volatility is about to resume.
BTC is stuck in a tight price range between $21,500 and $21,000 while ETH continues to trade between $1,250 and $1,190. Both cryptocurrencies have seen their prices squeeze in the last few days as the market sentiment remains in “extreme fear.” Interestingly, a particular technical indicator hints at the probability of a downswing.
The Tom DeMark (TD) Sequential indicator recently presented sell signals on Bitcoin and Ethereum’s nine-hour chart. The bearish formations developed as green nine candlesticks, indicative of one to four candlesticks correction. Although BTC and ETH took a brief nosedive after the technical development, there hasn’t been a clear violation of support or resistance.
Source: TradingView
Transaction history shows two critical price points that may help determine where Bitcoin is going next. Roughly 882,400 addresses had previously purchased over 570,000 BTC between $20,800 and $21,500. Meanwhile, more than 200,000 addresses are holding over 210,000 BTC $21,500 and $22,100.
Given the lack of resistance ahead, a sustained nine-hour candlestick close above $22,100 could be significant enough to trigger a bullish breakout toward $25,000 or even $27,000. But if the $20,800 support level were to give up, the next crucial interest zone sits at $19,000.
Source: IntoTheBlock
Transaction history also reveals that Ethereum cannot afford to lose the $1,100 support level. Breaching such a vital demand zone can trigger another sell-off that sends ETH to $600. Therefore, it’s imperative for Ether to slice through the $1,320 resistance barrier to have a chance of advancing toward $1,700.
Source: IntoTheBlock
The macroeconomic outlook still doesn’t look favorable as recession fears heighten. For this reason, it’s imperative to wait for a decisive close below resistance or above support to enter the markets. Although a few metrics suggest that the bottom is near, there could be more downward movement before the trend reverses.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
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