Bitcoin, Ethereum Poised For Volatility
Crypto Briefing | May 24, 2022 01:12AM ET
Bitcoin and Ethereum could be on the brink of a significant price movement. Bitcoin and Ethereum continue to consolidate while searching for new catalysts that will help them gain the momentum needed to break out. Bitcoin and Ethereum remain stagnant, trading within a tight price range, as traders cannot decide on whether prices will go up or down.
Data from Coinglass shows that market participants are divided on what the future holds for Bitcoin and Ethereum. Roughly 50% of all accounts with open BTC positions across all major crypto derivatives exchanges are net-long, while the other 50% are net-short. Similar trading history can be seen around ETH.
The lack of certainty among market participants about the future price action is wearing down Bitcoin and Ethereum.
The top two cryptocurrencies by market cap continue to consolidate within no-trade zones, waiting for a spike in volatility. The longer BTC and ETH get squeezed, however, the more prominent the price movement that should follow. But the problem is determining the direction in which the trend will resolve.
h2 Bitcoin, Ethereum Await Catalysts/h2For instance, Bitcoin has defined a clear support floor at $28,870 and a stiff resistance barrier at $30,750. A decisive four-hour candlestick close outside of this range will determine where BTC will go next. The formation of a symmetrical triangle suggests that upon the break of the stagnation period, prices will move by 17.70%.
Under such circumstances, a breach of the $30,750 resistance level might result in an upswing to $35,300, while dipping below the $28,870 could see Bitcoin take a nosedive to $24,400.
Get The News You Want
Ethereum is also showing ambiguity as long as it continues to trade between $1,960 and $2,145. Only a sustained four-hour close below support or above resistance can help determine where ETH will go next. It is reasonable to remain on the sidelines waiting for the trend to resolve until that happens.
The reason to remain patient with Ethereum is that it appears to be forming an ascending triangle on the four-hour chart. The height pattern’s y-axis suggests that a break of the hypotenuse at $1,960 or the x-axis at $2,145 could result in a 16.57% price movement.
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.