The crypto trader and analyst Altcoin Sherpa shared his latest technical analysis for Bitcoin (BTC) and Ethereum (ETH) in a tweet yesterday. In his analysis, he predicted that there will be a large amount of volatility for both of the crypto market leaders in the short term. The trader also mentioned that no clear trend has been established on either crypto’s charts.
Altcoin Sherpa then went on to state that a key level on BTC’s daily chart will be the $26.5K mark. Altcoin Sherpa’s reasoning behind this is due to the fact that the leading crypto’s price was always able to close above this price point just hours after it had dipped below the level in the past 2 months.
For the medium term, the trader did not rule out the possibility of BTC’s price reaching $29K. On the other hand, he still predicted that there could be a drop towards $25K later this year. He was unable to clarify when and how this drop in BTC’s price would happen.
BTC/USD daily chart (Source: TradingView)
To justify his downside target of $25K, Altcoin Sherpa added that the level has a lot of confluence to it. Firstly, $25K has been a key support and resistance level over the past few months, according to the trader. Furthermore, $25K is also the level at which the 200-day EMA line and the 0.382 Fibonacci Retracement Level currently lie.
In his video, he mentioned that his bearish thesis will be invalidated if BTC’s price continues to hover above $26.5K for the next few weeks before entering into another move up. Should this happen, the trader believes that BTC could rise up back to the $30K level.
ETH/USD daily chart (Source: TradingView)
In terms of ETH, Altcoin Sherpa forecasted that the leading altcoin’s price movement will display a similar pattern to that of BTC’s in the next couple of months. He also identified $1,700 as a key support and resistance level to watch.
The trader concluded that ETH’s charts “look good” overall, but he also noted that ETH may be outperformed by BTC in the medium to long term. Nevertheless, he bullishly added that there may come a day where ETH trades at $10K if it begins to trend again.
At press time, CoinMarketCap indicated that both BTC and ETH printed losses over the past 24 hours. The price of BTC stood at $26,860.50 following a 1.41% drop during this period. Meanwhile, ETH was trading at $1,809.04 after its price dropped 0.74%.
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Source: Cryptocurrency - investing.com
