BTC and ETH Hit Reverse ahead of Fed Chair Powell Powell Chatter

Key Insights:

• Bitcoin (BTC) and ethereum (ETH) have had a bearish morning, with BTC at sub-$19,000 and ETH at sub-$1,300.
• Risk aversion swept across the global financial markets as yet another US multinational sounded the alarm bells.
• The technical indicators remain bearish, suggesting a possible return to 2022 lows.

On Tuesday, bitcoin (BTC) fell by 0.72%. Partially reversing a 2.22% rise from Monday, BTC ended the day at $19,097. While seeing red, BTC visited $20,000 for the first time in nine sessions.

A bullish morning saw BTC strike a mid-day high of $20,385. BTC broke through the First Major Resistance Level (R1) at $19,481 and the Second Major Resistance Level (R2) at $19,726.

However, coming up against the Third Major Resistance Level (R3) at $20,365, BTC tumbled to a late low of $18,838. Finding support at the First Major Support Level (S1) at $18,842, BTC ended the day at $19,097.

Ethereum (ETH) fell by 0.67% on Tuesday. Partially reversing a 3.24% gain from Monday, ETH ended the day at $1,328.

Tracking the broader market, ETH rallied to a mid-day high of $1,401. ETH broke through the First Major Resistance Level (R1) at $1,359 and the Second Major Resistance Level (R2) at $1,382.

However, the reversal saw ETH slide to a low of $1,304. Steering clear of the First Major Support Level (S1) at $1,296, ETH wrapped up the day at $1,328.

Risk Aversion Sweeps across the Equity and Crypto Markets

After decoupling from the NASDAQ 100 last week, the crypto market succumbed to external market forces on Tuesday. US consumer confidence jumped in September, giving the riskier assets a jolt. News of attacks on the Nord Stream gas pipeline added the market angst.

Things didn’t get better for riskier assets this morning, with Apple Inc. (AAPL) sending the riskier assets into negative territory.

Overnight, US tech giant and multinational Apple Inc. (AAPL) announced that it would drop plans to increase the production of its new iPhone 14 product suite, citing lackluster demand.

This morning, the NASDAQ 100 Mini was down 110.50 points.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.85% to $18,935. A mixed morning saw BTC rise to an early high of $19,245 before falling to a low of $18,478.

BTC tested the First Major Support Level (S1) at $18,495 before revisiting $19,100.

Technical Indicators

BTC needs to move through the $19,440 pivot to target the First Major Resistance Level (R1) at $20,042. A BTC move through $19,500 would support a bullish session.

In the case of another extended rally, BTC should test the Second Major Resistance Level (R2) at $20,987 and resistance at $21,000. The Third Major Resistance Level (R3) sits at $22,534.

Failure to move through the pivot would leave the First Major Support Level (S1) at $18,495 in play. Barring an extended sell-off, BTC should avoid sub-$18,000 and the Second Major Support Level (S2) at $17,893.

The Third Major Support Level (S3) sits at $16,346.

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 $19,278.

The 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish price signals.

A move through the 50-day and 100-day ($19,549) EMAs would give the bulls a run at R1 ($20,042) and the 200-day EMA ($20,096). However, Tuesday’s slide through the 50-day EMA suggests a bearish afternoon session.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 2.68% to $1,292. A choppy morning saw ETH rise to an early high of $1,340 before sliding to a low of $1,254.

ETH fell through the First Major Support Level (S1) at $1,288 before revisiting $1,312.

Technical Indicators

ETH needs to move through the $1,344 pivot to target the First Major Resistance Level (R1) at $1,385 and the Tuesday high of $1,401. With no US economic indicators to consider, Fed Chair Powell could move the dial later today.

In the event of an extended rally, ETH could test the Second Major Resistance Level (R2) at $1,441 and resistance at $1,450. The Third Major Resistance Level (R3) sits at $1,538.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,288 in play. Barring an extended US session sell-off, ETH should avoid sub-$1,250 and the Second Major Support Level (S2) at $1,247.

The Third Major Support Level (S3) sits at $1,150.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below the 50-day EMA, currently at $1,345. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

An ETH breakout from the 50-day EMA ($1,345) would give the bulls a run at R1 ($1,385) and the 100-day EMA ($1,404). However, failure to move through the 50-day EMA would leave ETH under pressure near-term.