Bitcoin Edging Very Slowly Towards Strong Resistance At The 500 Day Moving Average

Published 02/03/2022, 03:04 AM
Updated 07/09/2023, 06:31 AM
  • Bitcoin was edging very slowly higher but I was not convinced this was the start of a bull trend.

  • Ripple was seeing consolidation and narrowing ranges, but I don't not think this was a base-building exercise. Same levels apply for today.

  • Ethereum, however, did see a push higher.

  • Today's Analysis

    Bitcoin was edging very slowly towards strong resistance at the 500 day moving average at 40400/40600. Above here, it would meet the 23.6% Fibonacci resistance at 41400/500. Minor support levels for scalpers were at 37900/700 and 36900/800. Further losses targeted 36200/36000.

    Ripple held first resistance at 6560/90 last week as predicted and was holding 6300 so far this week. A break below the 100 week moving average at 6000/5900 obviously adds pressure for a retest of the low at 5600/5500. I would not bet on this holding on the next test and a break lower is an obvious sell signal.

    Look for a test of the last big swing low at 5100/5080. Again I doubt this will hold for long and a break below here is a disaster for bulls. Prices could go into free fall!!!

    Gains were likely to be limited and I doubt we will beat resistance at 6560/90. A break higher however would meet a sell opportunity at 7350/7450. Stop above 7550. A break higher was a nice medium term buy signal. Buy and hold!!

    Ethereum was testing first resistance at 2800/2820 and was holding here as I write. Shorts needed stops above 2870. A break higher would target 2920, perhaps as far as strong resistance at 3000/3050. Shorts at 2800/2820 targeted 2660/20, perhaps as far as 2570/50.

    Video analysis

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