Bitcoin Drops Sharply and Ethereum also Follows This Trend

• The bitcoin price yesterday formed a new September low at $18180.
• Yesterday, the price of Ethereum dropped to the $1220 level, after which we see a recovery to the $1300 level.

Bitcoin chart analysis

The bitcoin price yesterday formed a new September low at $18180. From that moment, we see a bullish consolidation and price recovery above the $19000 level. We currently have consolidation at that level, and we must hold there before the next bullish impulse. The MA20 and MA50 moving averages provide additional support at the $19,000 level. The next resistance is in the zone around the $19,500 level, and extra pressure at that point can create the MA200 moving average. When the price crosses above, the next target is the $20,000 resistance level. For a bearish option, we need a negative consolidation and a move below the support at $19000. Then we need to stay below, and the price will continue to retreat with increased bearish pressure. Potential lower targets are the $1850 and $1800 levels.

Ethereum chart analysis

Yesterday, the price of Ethereum dropped to the $1220 level, after which we see a recovery to the $1300 level. For now, we have resistance at that level, which is starting to create a negative consolidation for a possible price break below. The MA50 moving average represents additional pressure on the price. For the continuation of the bearish trend, we need further negative consolidation. And the price could go down to $1250, the level of the previous minor support zone. A potential lower target is the $1200 level. We need to start by holding above the $1300 level for a bullish option. Then, with bullish consolidation and momentum, we could continue the recovery. Potential higher targets are $1350 and $1400 levels. Additional resistance in the zone around $1400 is in the MA200 moving average.

Market Overview

According to a statement released Wednesday, French bank Societe Generale, France’s third-largest bank by market capitalization, is entering the cryptocurrency fund industry in response to growing investor demand. Cryptocurrencies and other forms of digital assets are attracting the attention of investors and businesses.