Bitcoin [BTC] and Ethereum [ETH] Get Much Needed Bounce

Bitcoin bounce

After managing to close in the green on Tuesday after wild volatility bitcoin carried on Wednesday and is +14% at the time of writing.

BTC dropped beneath a critical support resistance on Tuesday of $30k but managed to get back above it and back above $33k before Tuesday’s close. The price has continued to work its way back to the middle of the range and BTC bulls are wondering if a trip to the top of the range around $40k is imminent.

Bitcoin will have to get back above another important support turned overhead resistance in $35k before $40k can be challenged hypothetically yet again.

If $35k can be conquered by bulls yet again then market sentiment may shift slightly about the short-term but bears still have control of the momentum below $35k.

The above chart from AlanSantana denotes the amount of volume on the 22nd that came in and the bull scenario that he sees playing out on the 4HR chart.

If the chart plays out it will usher in a bullish July that is much needed for short-term hope – this would potentially be a very desirable result to the upside for bulls. 

Bitcoin’s Fear and Greed Index has found its way back into figures in the teens. After getting back to ‘Fear’ last week the index shows BTC is back in the ‘Extreme Fear’ region and reflects an uncertain market.

BTC had a daily candle close on Wednesday of $33,676. 

Ethereum 

Ethereum is +2.5% for the last 24 hours at the time of writing and is flirting with an important overhead resistance in $2k that was support resistance just hours ago.

Ether visited a very critical resistance of $1,860 yesterday. ETH’s price wicked down briefly below this support resistance but quickly reclaimed it as support.

ETH has sprung back over $2k and is ranging between $1,860 and $2,100. 

If bears can continue to challenge the lows of the range and manage to drag ETH lower the next stop will be $1,734. If that price doesn’t hold, bears will hope to send the price back to the former all-time high of 2018 of $1,448. 

There could potentially be strong support resistance at the former ATH but Ether bulls will hope they never find out.

Ether has strongly outperformed the number one cryptocurrency by market capitalization [bitcoin] over the last 12 months by 133%. 

Despite the momentum over the past year Ether’s dominance [16.6%] is down over the last 37 days since BTC dominance [45.3%] reversed its course to the upside.  BTCD bottomed at 37.4% in late May and has been gradually climbing since.

ETH’s weekly range is $1,840-$2,380.

Ether closed Wednesday daily candle worth $1,968.