Bitcoin, Ethereum Flash Buy Signals On Low Liquidity
Crypto Briefing | Apr 29, 2022 03:09AM ET
Bitcoin and Ethereum are trading tentatively while one particular technical indicator points to a rebound. Bitcoin and Ethereum have incurred significant losses over the past month and have reached oversold territory. Although buy signals are starting to appear, it is reasonable to wait for confirmation given the lack of trading volume. Bitcoin and Ethereum are presenting buy signals while trading at a critical support zone.
The flagship cryptocurrency has retraced by nearly 22% over the past month, going from a high of $48,223 and recently hitting a low of $37,693. Despite the brief dip below the 78.6% Fibonacci retracement level at $38,530, this support area was able to hold. Further signs of strength around the current price levels could lead to a sustained bullish impulse.
The Tom DeMark (TD) Sequential indicator anticipates that sidelined investors might take advantage of the recent correction to re-enter the market and help BTC rebound. This technical index has presented a buy signal on Bitcoin’s three-day chart, which is indicative of a one to four candlesticks upswing.
If Bitcoin can stay above the $38,530 support level, it would likely collect the liquidity to validate the optimistic outlook and rebound toward $43,670 or even $52,000.
Source: TradingView
Ethereum has also incurred significant losses over the past month. Since early April, it retraced by nearly 23%, losing more than 800 points in market value. The second-largest cryptocurrency by market cap now appears to be approaching a crucial demand zone that may help it rebound.
The TD setup has already flashed a buy signal in the form of an aggressive 13 on ETH’s three-day chart, while a red nine candle would likely develop in the next three-day trading session. These bullish formations anticipate that momentum is building for an upswing. Still, Ethereum could dip to $2,700 before it rebounds.
Only a decisive three-day candlestick close above $3,000 can confirm the optimistic outlook. If this were to happen, sidelined investors could be encouraged to re-enter the market, pushing Ethereum to $3,600 or even $4,000.
Get The News You Want
Although a few buy signals are starting to appear after the steep correction Bitcoin and Ethereum saw over the past month, the lack of trading volume seen in the last few days suggests that retail investors are not interested in entering the market at the current price levels.
If buy orders do not pick up soon, BTC could breach the $38,530 support and fall to $32,850 or $26,830 while ETH might dip below $2,700 and target $2,500 or even $2,160.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.