Bitcoin, Ethereum remain confusing
Bitcoin chart analysis
The price of Bitcoin yesterday once again made a pullback with $ 52,000. The price quickly dropped from $ 52,000 level below $ 50,000, and we have current support at $ 48,900. We are below all moving averages again, and the bearish pressure increases again. If the current support does not last, we can find ourselves in the $ 46,000 December support zone again.
- We need a new positive consolidation, first above $ 50,000 and then above $ 52,000.
- Then we get support again in moving averages, and then we can expect a further continuation of the bullish trend.
- At $ 54,000, we have the next higher resistance, and if we overcome it, our target is the $ 58,000-59,000 zone.
- We need to continue the negative consolidation that will direct the price towards support at $ 46,000.
- This is our December Support Zone, and if it doesn’t hold up, then there’s a chance we’ll retest the December low at $ 43,500.
- Depending on further consolidation and the strength of the bearish pressure, the higher support on our chart is at $ 40,000, October support zone.
Ethereum chart analysis
Yesterday was another bad day for ETHUSD, and the price dropped from $ 4100 to $ 3900. For now, it has found support at that level, and we are currently looking at what kind of consolidation ETH will do. Below we have the December trend line of support, and if the price breaks down, then we can consider a further drop in the price. Otherwise, we bounce off the line and move on to a new bullish impulse.
- We need a new positive consolidation and a jump in prices above $ 4,000.
- Then we enter the $ 4000-4100 zone again, expecting a further price oscillation.
- We can climb above $ 4,200 to a safer area on the chart with positive consolidation.
- Our next target is the previous high at 4500. We notice that the price is declining from the MA200 almost throughout December, and we need to move above for a more specific bullish scenario.
- We need negative consolidation and testing of the lower December trend line.
- $ 3800 can be a crucial point, and if it doesn’t last, we go down to $ 3700 and maybe visit the December minimum at $ 3470.
Popular crypto analyst Crypto Whale has commented that El Salvador should discard Bitcoin and opt for other more practical and cheaper cryptocurrencies. The crypto investor, a critic, explained that Bitcoin transactions in El Salvador fell by 89 percent, noting that locals are ready to reject Bitcoin. He said Salvadorans no longer want to use Bitcoin because it is obsolete due to network challenges, high transaction fees, and slow transactions. Bitcoin was officially adopted as a legal tender in El Salvador in September. Since then, positive reports of Bitcoin adoption have arrived from the country. Reports say that with over 3 million downloads of Chivo wallets, more Salvadorans have Bitcoin wallets than classic bank accounts, in line with Bukele’s primary goal.
Eswar Prasad, a senior professor of international trade policy at Cornell University, recently warned of the risks associated with Bitcoin. According to him, the world’s most valuable digital assets may not last that long. In an interview with CNBC’s Squawk Box Europe, the economist said BTC doesn’t serve well as a medium of exchange. He believes the recent rise in the adoption of cryptocurrency assets has forced central banks to launch a digital version of their own currencies. While Prasad expressed his concern about BTC, he supported blockchain technology. Prasad is one of the most famous economists in the world.
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