In today’s analysis we will discuss about the two possible scenario for BTCUSD now that it has reached a historical resistance area, and how the ETHUSD might go back to the 170 area.

BTCUSD

Above is the 4H BTCUSD chart, the pair has now come into the area that I previously predicted. In this current area we have quite a bit of resistance from the historical level shown in blue, and the visible descending trendline. I am currently monitoring how the price acts in the ellipse drawn, as this is a crucial area. I will wait to see if there is a rejection followed by a move down to 6100 again (as shown by blue arrow) , or if the bulls take full control. Should the market be bullish, we could see a break above the descending trendline followed by a retest before the next bullish leg goes towards 7300, which is my -61.8% Fibonacci extension target (pink arrow scenario).

ETHUSD

Secondly, we have the ETHUSD 4HR chart showing a retest of the broken ascending parallel channel. This is also occurring at the golden ratio Fibonacci level (61.8%). We have had three candles with significant rejection wicks off this, as well as an Ichimoku cloud resistance, in this area. These confluences lead me to the conclusion that ETHUSD will head lower to the 170 area again.

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