Bitcoin and Ethereum: Down trend and Little Recovery
- The price of Bitcoin fell below $20,000 this morning.
- During the weekend, the price of Ethereum hovered below the $1,500 level.
- Argentina’s Mendoza province has launched a system that allows taxpayers to pay their taxes entirely with cryptocurrencies.
Bitcoin chart analysis
The price of Bitcoin fell below $20,000 this morning and managed to stop at the $19,550 level. After that, the price started a new recovery, and now we are at the $20,000 level. We will get additional support in the MA20 and MA50 moving averages if we stay above that level. The bitcoin price could then continue its recovery to the $21,000 level, where the MA200 moving average awaits us as additional resistance. We need a negative consolidation and a new price pullback below the $20,000 support level for a bearish option. A break below would put extra pressure on the unstable bitcoin price, and a continuation of the pullback towards the next lower support could occur. Potential lower targets are $19500 and $19000 levels.
Ethereum chart analysis
During the weekend, the price of Ethereum hovered below the $1,500 level before falling to the $1,425 level this morning. After that, we see that the price consolidated and began to recover. We are back to the $1500 level again. We need a break above and a positive consolidation to continue to the bullish side. Potential higher targets are $1550 and $1600 levels. For a bearish option, we need a new negative consolidation. After that, we could expect the price to start retreating. First up to the $1450 level and below the MA20 and MA50 moving averages. Then we could expect a further continuation of the drop in the price of Ethereum to the $1400 support level.
Argentina’s Mendoza province has launched a system that allows taxpayers to pay their taxes entirely with cryptocurrencies. Due to their recent popularity, more governments are incorporating cryptocurrencies as a way to pay for government obligations.