HomeTradingTechnical analysis of the price of Bitcoin and Ethereum

Technical analysis of the price of Bitcoin and Ethereum

Both major stock indexes of the S&P500 and Dow Jones drop more than 4%, while the Nasdaq Comp. loses 5.5%. Trouble also for gold prices, which lost 2.4% in 5 days, closing at $1,674/oz for the first time since April 2020.

In addition to the doubts of the Fed and the US Treasury, which are questioning the effectiveness of the soft landing economic plan, what worries US investors is the real inflation figure close to 17%, double the official monthly figure released by the Fed last week estimated at 8.3%

Bitcoin also reflects the critical momentum with a weekly decline of just over 11%, the second-worst weekly close in the last quarter. Even more ruinous is the closing of Ethereum (ETH), which ends the historic week – due to the technical officialization of the switch from PoW to PoS on Thursday, 15 September at 6:42 UTC at block 15537393 – registering a -24.5%, the worst decline since May 2021.

Following the weekend’s weak trend, it begins the third week of September in distress with all blue chips below par. 

Among the top 100 largest-capitalization cryptocurrencies from the beginning of the day, only two cryptocurrencies are sailing in positive territory. These are two tokens pegged to independent blockchains:

Helium (HNT), which uses a premium consensus mechanism called Proof-of-Coverage (PoC), the day’s best with a rise above 3% recovers $4;

Algorand (ALGO), a permissionless pure-validation Proof-of-Stake (PoS) blockchain protocol token, approaches 2% at $0.3150 per unit.      

Bitcoin (BTC) – technical analysis

Dangerous setback for BTC prices, which return to the lowest levels since the June lows.

The technical break of $18,550, the low of 7 September, erases the chances of a restart of the quarterly cycle from the lows touched earlier this month.

The technical support of $19,000 since June is proving to be an area of clash between bears and bulls. And this time again we seem to be witnessing a battle of honor in defense of this threshold.

In addition to a burst of pride, new buying action is needed to stabilize prices above $19,000 for the next 3 days.

Otherwise, we will see a new low for the year with sellers going to attack the next long-term support in the $17,500 area.

In order to return to assess upside operations, it is necessary to wait for the recovery of $20,700.

Ethereum (ETH) – technical analysis

Last week’s deep slide marks a loss of more than 35% from the highs reached in mid-August, undoing the rises of the past two months and bringing quotations back below $1,300, a step away from the levels indicated in the update from Friday 16 September.

Failure to hold $1,450 does not confirm the monthly cycle setting to the upside.

Under these conditions, it is necessary to wait for developments in the coming days of the week before returning to re-evaluate new position purchases for the medium term.

Federico Izzi
Federico Izzi
Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".