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They are extraordinarily volatile, but it is still possible to identify the base trend and where prices tend to find where to buy support or sell resistance.
Cryptocurrencies may be unlike anything that has ever been traded in the global markets, but their pricing models are as old as any asset or currency you can name. The top, bottom and sides are easy to spot. You don’t need a decentralized finance treatise to see what’s going on.
That’s the tremendous value of just looking at the price: for a few minutes you can put the story told about the specific crypto aside. Buyers and sellers of Bitcoin and Ethereum or whatever new you want to go with is leaving a pattern every day and every week.
The daily Bitcoin price chart looks like this:
Bitcoin Daily Price Table, 11 20 21.
stockcharts.com
From the 30,000 low of June / July to the early November high of 68,000, this is an extraordinary bullish move. Note that the relative strength indicator (RSI, above the price chart) diverged negatively from the October high to the November high.
This was confirmed by the negative aspect of the moving average convergence / divergence indicator (below the chart). A few days after this became apparent, the price of Bitcoin fell below the 50-day moving average (the blue line).
The weekly Bitcoin price table is here:
Bitcoin Weekly Price Table, 11 20 21.
stockcharts.com
You can see that the cryptocurrency is encountering resistance above 60,000, first in March / April and then again, a little higher, in October / November. Sellers are now outperforming buyers at around the 68,000 level, which is the new point of resistance. It was the buyers who took control in June / July at just under 30,000 this is where the support lies.
The negative divergences between RSI, MACD and price are clear on this weekly look but that may change. Note that Bitcoin remains above both its 50-day moving average (blue line) and its 200-day moving average (red line).
Ethereum’s daily price chart now looks like this:
Ethereum Daily Price Table, 11 20 21.
stockcharts.com
These are negative divergences on the relative strength indicator and the moving average convergence / divergence indicator. Not as clear or dramatic as on the Bitcoin chart, but the RSI and MACD here suggest a price rise that declines dynamically.
Again, with the crypto continuing to trade above its 50-day moving average and 200-day moving average, it’s hard to call a trend change. The bottom-up action remains in place.
The weekly price table for Ethereum is here:
Ethereum Weekly Price Table, 11 20 21.
stockcharts.com
Sellers this month have taken over from buyers just above 4750. This is the new resistance level traders will be watching. The last time buyers came in force was in March / June / July there around 1750.
This is a major support area if the September 1750 lows are removed. Note the negative divergences of the RSI and MACD from the price. Also note that Ethereum continues to follow an essentially uptrend, well above the 50 and 200 day moving averages.
No investment advice. For educational purposes only. Always consult with a registered investment advisor before making a decision.
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Sources 2/ https://www.forbes.com/sites/johnnavin/2021/11/20/bitcoin-and-ethereum-the-new-support-and-resistance-levels/ The mention sources can contact us to remove/changing this article |
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