A BTC Return to $19,500 Would Support an ETH Run at $1,400

Key Insights:

• A bearish Tuesday session saw bitcoin (BTC) and ethereum (ETH) end mini two-day winning streaks.
• Bearish crypto sentiment weighed as investors responded to another set of positive US economic indicators.
• The technical indicators remain bearish, with Fed monetary policy and economic uncertainty leaving BTC and ETH in tight price ranges.

On Tuesday, bitcoin (BTC) declined by 1.13%. Partially reversing a 1.49% gain from Monday, BTC ended the day at $19,334. Notably, BTC fell short of $20,000 for the eleventh consecutive session while avoiding a return to sub-$19,000 for a Third session.

A bullish start to the day saw BTC rise to a mid-morning high of $19,709. Coming up short of the First Major Resistance Level (R1) at $19,770, BTC slid to a late low of $19,100. BTC fell through the First Major Support Level (S1) at $19,252 before a partial recovery to end the day at $19,334.

Ethereum (ETH) fell by 1.58% on Tuesday. Partially reversing a 1.99% gain from Monday, ETH ended the day at $1,311.

Tracking the broader market, ETH rose to an early morning high of $1,342. Coming up short of the First Major Resistance Level (R1) at $1,349, ETH slid to a late low of $1,287. ETH briefly fell through the First Major Support Level (S1) at $1,305 before ending the day at $1,311.

On Tuesday, market reaction to US economic indicators sent BTC and ETH into negative territory. Fear fear overshadowed US corporate earnings despite Goldman Sachs (GS), Johnson & Johnson (JNJ), and Lockheed Martin (LMT) releasing better-than-projected quarterly results.

This morning, bearish sentiment continued to test buyer appetite. The NASDAQ Mini gave up early gains, adding further pressure on BTC and ETH. The NASDAQ had been up by more than 150 points before hitting reverse. At the time of writing, the NASDAQ Mini is up by just 29.75 points, suggesting a choppy US session.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.79% to $19,181. A bearish start to the day saw BTC fall from an early high of $19,361 to a low of $19,152.

Technical Indicators

BTC needs to move through the $19,381 pivot to target the First Major Resistance Level (R1) at $19,662 and the Tuesday high of $19,709. A BTC move through the Tuesday high of $19,709 would signal a bullish session. However, FOMC member chatter needs to be crypto-friendly to support a breakout.

In the case of an extended rally, the Second Major Resistance Level (R2) at $19,990 and $20,000 would likely come into play. The Third Major Resistance Level (R3) sits at $20,599.

Failure to move through the pivot would leave the First Major Support Level (S1) at $19,053 in play. Barring an extended sell-off, BTC should avoid sub-$18,500. The Second Major Support Level (S2) at $18,772 should limit the downside.

The Third Major Support Level (S3) sits at $18,163.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 50-day EMA, currently at $19,336.

The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA to deliver bearish signals.

BTC needs to move through the 50-day EMA and the 100-day EMA ($19,392) to target the 200-day EMA ($19,610) and R1 ($19,662). However, failure to move through the 50-day EMA ($19,336) would leave the S1 ($19,053) in view.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 1.01% to $1,298. A mixed morning saw ETH rise to an early high of $1,314 before falling to a low of $1,292.

Technical Indicators

ETH needs to move through the $1,313 pivot to target the First Major Resistance Level (R1) at $1,340 and the Tuesday high of $1,342. However, risk appetite will need to improve to support a breakout from the morning high of $1,314.

In the event of an extended rally, the Second Major Resistance Level (R2) at $1,368 and $1,400 would likely come into play. The Third Major Resistance Level (R3) sits at $1,423.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,285 in play. However, barring another crypto sell-off, ETH should avoid sub-$1,270 and the Second Major Support Level (S2) at $1,258.

The Third Major Support Level (S3) sits at $1,203.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below 50-day EMA, currently at $1,307. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through the 50-day EMA ($1,307) and the 100-day EMA (1,317) would give the bulls a run at R1 ($1,340). However, failure to move through the 50-day EMA ($1,307) would leave S1 ($1,285) in play.