Bitcoin + Ethereum: technical supports are tested in the short term

The course of Bitcoin and Ethereum rebounds on technical support after two consecutive profit-taking sessions under resistance. The trend remains bullish.

Key technical factors of the article:

• The price of Bitcoin has further declined in front of the lead screed of $ 10,000, but reacts on a short-term support. Technical compression is becoming more and more tight.
• Ethereum remains bullish as long as the major support at $ 190 remains preserved. The equivalent of $ 10K BTC is $ 220 on ETH / USD.

On this long, extended Ascension weekend, as well as the Memorial Day holiday in the United States on Monday, May 25, trading volume is very low in the financial markets. Pros traders will return Monday, and even Tuesday for US trading rooms. It’s a time for profit taking, it’s probably what happened on the bitcoin price yesterday.

The tensions, the verbal jousting between the United States and China on the themes of Taiwan, Hong-Kong, the Covid-19 and trade, created a little risk aversion, moreover the equity market is also in a profit-taking phase.

On the technical side, there is no impact of the last two trading sessions on the market structure. The price of Bitcoin even returned to the contact of a bullish support which seems to produce a recovery effect the minute I write these lines.

The chart above shows the daily Japanese candles for the Bitcoin price. The latter rejected under the extreme resistance of the 10K, but already seems to be recovering on the support at $ 8,900, the conjunction of an upward chartist trend line in place from the low point at $ 3,850 with a crucial component of the ichimoku system. , the Kijun-sen.

The background graphic framework remains the trading range between $ 8,500 and $ 10,000. But the $ 8,900 is an intermediate threshold that can allow a bullish recovery for this weekend.

The technical analysis of the second market leader, Ethereum, is also stable, a channel between the strong support at $ 190 and the major resistance at $ 220. I still believe that returns to $ 190 are buying opportunities.

Finally, let's add a little nuance: the downside risk lies in the breakdown of support at $ 8,500. This can be done in the form of a vertical drop leading the market to $ 7,200. In my opinion, this is the minority scenario in terms of probabilities.

Ethereum in Japanese Daily Candles – TradingView Source

Follow Vincent Ganne on Trading View for further analysis on the financial markets. The technical thresholds and the trend indicated above are based on the technical approach "price, momentum, sentiment, ichimoku". The data come from Bitstamp and the graphics of TradingView.

This content is offered for informational purposes only and does not constitute an investment recommendation. We remind you that theinvestment in crypto assets, including Bitcoin, is extremely risky. Cryptocurrency prices are prone to large and unpredictable price movements.