HomeTradingAnalysis of Bitcoin (BTC) and Ethereum (ETH)

Analysis of Bitcoin (BTC) and Ethereum (ETH)

Last weekend saw the lowest trading volumes in months with the risk of creating strong price swings with large orders from a few traders.

Just as happened on Thursday 13 or Friday 14 October, a few leveraged orders caused a sharp increase in volatility then recovered over the weekend with prices falling back into the narrow trading range that for the entire week has caged prices within slightly more than $1,000 for Bitcoin and ‘only’ $190 swings between the extreme low and high points for Ethereum.

A technical condition that is further driving down the volatility index that has slipped to its lowest levels in the last quarter.

Sentiment as measured by the Fear&Greed index also returns for the umpteenth time – the 10th in the past 2 months – to test the lowest threshold that opens to the ‘Extreme Fear’ range indicating how tense nerves remain among crypto market participants.

Analysis of Bitcoin

The trend of the last few days does not change the overall technical picture with prices trying to recover the psychological threshold of $20,000.

The technical threshold to follow is the 20,500 area. Only a breach of this resistance level, accompanied by buying volumes, would begin to give a first sign of a desire to reverse the trend.

Analysis of Ethereum

Similar technical structure for ETH with the advantage of having a better margin of safety in case of any descent.

Unlike Bitcoin, the price slide of the past few days did not go below the levels of the annual lows marked last June, confirming the safety zone where the price rebounded again by climbing back above $1,330, a step away from the relative highs recorded last week ($1,340).

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".