Trading: technical analysis of Bitcoin (BTC) and Ethereum (ETH)
Trading: technical analysis of Bitcoin (BTC) and Ethereum (ETH)

Trading: technical analysis of Bitcoin (BTC) and Ethereum (ETH)

By Federico Izzi - 7 Oct 2022

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The positive price movement is being led by the two queens, Bitcoin and Ethereum, which since Monday’s opening are putting up more than 5%.

Scrolling through the list of blue chips, the color green prevails highlighting a positive trend for the entire sector.

Among the major alternative blockchains, the performances of Cardano (ADA), Solana (SOL), Polkadot (DOT) and Avalanche (AVAX) remain somewhat behind. So far they are all up just over 3% since Monday’s open.

To find the first sign below par, one has to go down to the 19th position of the largest capitalized coins occupied by the LEO token, the utility token of the iFinex ecosystem launched in 2019 to cover the capital stolen by a hacker attack on BitFinex’s platform. So far the weekly loss stops at half a percentage point, curbing the descent that since the beginning of September has seen prices fall from relative highs of $5.33 per token to the current $4, the lowest level since January. Despite the difficulties, the LEO token is registering an 8% performance since the beginning of the year, among the few cryptocurrencies to have a positive annual balance.

Bitcoin –  Technical Analysis

The closing of the monthly sub-cycle hypothesized during the current week has been anticipated.

Indeed, after touching a relative low, in the $19,000 area, during the weekly handover from Sunday to Monday, the increase in demand began to outpace the timid supply causing the price to rise above $20,400 and surpass the late September high.

Despite having erased the losses of the past 20 days, Bitcoin‘s technical structure still does not provide the signal needed to chase away bearish fears.

The long-awaited daily close above $20,000 that occurred on Monday, 5 October, has not been confirmed in the following days.

For this reason it is recommended to keep operational caution alive, but allows the alert threshold to be reduced by a few points from $18,800 to $19,000.   

Ethereum – Technical Analysis

The defense of $1,250 has pushed Ethereum‘s price away from near-term danger, but it has failed to break above the relative highs ($1,400) of late September indicating short-term relative strength below that demonstrated by Bitcoin.

Prices continue to oscillate inside the cage between $1,250 and $1,400 for more than three weeks now, compressing volatility.

The index, which measures daily volatility on a monthly basis, falls to the lowest levels since last June.

For this reason, the next breakup, up or down, could cause marked price swings brought about by the hedging of positions that have been exploiting this slumbering of prices this past month. 

Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & 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 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".

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