Bitcoin and Ethereum: Bearish Pressure Seems to be too Much
- The price of bitcoin failed to hold at the $23000 level.
- The price of Ethereum fell below the $1800 level this morning.
- Gold has withstood the test of previous economic meltdowns, rising against the decline in the dollar’s value.
Bitcoin chart analysis
The price of bitcoin failed to hold at the $23000 level, and a break below followed, and the price stopped at the $21280 level. We have a minor recovery up to the $21550 level, but overall the bearish pressure seems to be too much for Bitcoin. For a bullish option, we need a new positive consolidation and a return above the $22000 level. If we manage to hold above, then we could try further price recovery. Potential higher targets are $22500 and $23000 levels. For the bearish option, we need a continuation of the negative consolidation and a price drop to the $21,000 level. The break below opens the door to lower levels. And the potential targets are $20,500 and $20,000 levels.
Ethereum chart analysis
The price of Ethereum fell below the $1800 level this morning. The bearish trend continued during the day, and the price is now $1700. Bearish pressure is intensifying, and a continuation of the decline in the price of Ethereum could occur. Today’s minimum was at the $1680 level. We need another positive consolidation and hold above $1700 to start for a bullish option. After that, the price should gather strength for a new bullish impulse. Potential higher targets are $1750 and $1800 levels. We need a continuation of today’s negative consolidation for a bearish option. The price is now testing the previous low at $1650; if we see a break below, we will likely continue to the $1600 support level. The August minimum is at the $1560 level.
Gold has withstood the test of previous economic meltdowns, rising against the decline in the dollar’s value. Despite the war between Ukraine and Russia, US inflation hitting a 40-year high, and concerns about an impending recession, the price of gold fell by only 7.07% in the previous six months. Gold has a market capitalization of about 11 trillion dollars. But over 50% of its demand is for jewelry, while 25% goes to investments, and central banks hold about 11.33%. Despite its volatility, Bitcoin has all the qualities that make it the best long-term hedge against inflation. It is anonymous and decentralized, so it is not prone to manipulation. The value of BTC has increased 407% compared to 35% of gold. Meanwhile, the value of the US dollar rose 15% against other currencies, but inflation reduced its purchasing power.