Bitcoin and Ethereum Chart Analysis - Are We in a Bear Market?

Bitcoin Chart Analysis

Bitcoin and Ethereum Chart Analysis - Are We in a Bear Market?Bitcoin and Ethereum Chart Analysis - Are We in a Bear Market?Source: Tradingview*

Bitcoin fell over 19% at times yesterday and caught itself in the USD 46,000 – 47,000 range shortly after. Currently, we are at around 46,200 USD. But what were the reasons for this rapid sell-off?

In the last chart analysis we already talked about the fact that we are coming to an important point. On the one hand, our golden pocket (0.618 – 0.65 Fib. retracement level) was at around USD 52,400, and on the other hand, our R1 monthly resistance was at around USD 52,700.

These two resistances combined with the falling volume and bearish divergences on the 1H, 4H and daily charts have led to this sell-off. Furthermore, many investors with too much leverage in trading were liquidated.

Bitcoin Outlook

Bitcoin and Ethereum Chart Analysis - Are We in a Bear Market?Bitcoin and Ethereum Chart Analysis - Are We in a Bear Market?Source: Tradingview*

At the moment, it seems like Bitcoin has caught itself a bit. We have been hovering in the 45,000 – 47,500 USD range since yesterday’s sell-off. But where do we go from here?

Our next strong support, which we already tested yesterday, is at around 42,300 – 43,000 USD. If we test this again, we have to hope that it holds, because below it, our next support is not until around 40,000 USD with the S1 monthly support.

Something else positive: On the upside, we have no more resistance for the time being. Only our monthly resistance R1 and the golden pocket, which has already been breached and tested and thus significantly weakened.

Of course, the next few hours or days could become much more volatile. At the moment, there are no signs that we will go back towards USD 50,000 within a very short period of time.