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Bitcoin bulls surrendered as prices dropped to $38,000
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USD supported crypto rally as prices were working higher
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BTC/USD remains supported by key technical indicators
Bitcoin (BTC/USD) and Ether (ETH/USD) have surrendered a portion of their recent gains which have seen prices slide throughout the day. After rebounding back to favorable levels last week, price action has remained stepped away from further upside potential, at least for now.
As the number of Covid-19 cases continue to surge, with the Delta variant as the prominent contributor to the recent outbreak, sentiment remains well poised for safe-haven assets such as Gold and Silver but for cryptocurrency, the result may be two fold as regulators continue to clamp down on the ability to invest or trade digital assets.
Following a series of positive tweets and interviews last week, with crypto enthusiasts Cathy Wood, Elon Musk and Jack Dorsey talking up the bull run, Amazons denial of allegations that the group would be accepting Bitcoin as payment by the end of the year hindered the ability for bulls to maintain favor above $40k.
After 10 consecutive days of gains, Bitcoin (BTC/USD) bulls ran into a wall of resistance at $42,397, the 38.2% Fibonacci retracement levelof the April – June 2021 move. With regulatory concerns still in the mix, the denial of recent allegations that Bitcoin would soon be adopted by tech giant Amazon weighed on the major cryptocurrency, highlighting the controversial and volatile nature of the space.
With prices retracing back to the $38,000 level, further developments in price action may unfold ahead of this weeks major event risk, specifically towards the major counterpartsthat may hold strong for the foreseeable future.
BITCOIN (BTC/USD) PRICE ACTION
As the 8 and 34-period Exponential Moving Average continues to track the daily movements in close proximity, with MACD currently hovering around the zero line.
With price action currently encapsulated between prominent levels, the ability to break below the key psychological level of $38,000 may give rise to further bearish motion.
For Ether (ETH/USD), prices have retraced towards the $2300 mark with price action still tracking Bitcoin.
As prices continue to trend towards $2400, the short-term trend remains in favor of the long-term trend. As depicted by the EMA, ETH is heading in an upward direction with the big question of whether it can sustain.
Ether (ETH/USD) 4-Hour Chart
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