Bitcoin, Ethereum Hang On To Crucial Support Levels: What Do Veteran Technical Analysts Say?

In a recent episode of “Casual Friday,” pseudonymous crypto analysts DonAlt and CryptoCred discussed the contradictory technical picture for Bitcoin BTC/USD, Ethereum ETH/USD and altcoins.

The Bitcoin Analysis: The conversation kicked off with a deep dive into Bitcoin’s charts across multiple timeframes. DonAlt highlighted the critical $59,000 level on the monthly chart, noting, “every time it looks like we’re finally gonna kind of move away from it get sucked back in.”

A break below could potentially lead to a test of lower supports around $52,000 or even $47,000. However, they note that the recent washout to $49,000 may have cleared out overleveraged positions, potentially setting up for a stronger bounce.

In contrast to the relatively bullish monthly chart, the weekly timeframe has a bearish structure, which has been a thorn in the side of bullish narratives. DonAlt admitted that the contradicting assessments on different time frames “just go to show how choppy the market is.”

Also Read: Bitcoin Spot ETFs See Muted Inflows As Negative Funding Rates Signal Bearish Sentiment

The Ethereum Analysis: Turning to Ethereum, DonAlt, who has been “bull posting” about the crypto, identified the $2,200-$2,300 range as a crucial support level for it.

He outlined his rationale for a bullish trade, saying “There’s a level that is actually really and that kind of prevents the market from going to zero, that’s usually what you want to bid.” The ETH/BTC ratio has also hit support at 0.043, a level not seen since January 2021.

The Overall Market: The discussion also touched on the impact of ETFs on both Bitcoin and Ethereum. While Bitcoin’s ETF has been seen as a major driver of its recent performance, Ethereum’s ETF has experienced outflows. DonAlt noted that without ETFs, Bitcoin would be trading at “$40,000 to $50,000 at best.”

The analysts speculated outflows could be temporary, drawing parallels to the initial outflows seen with Bitcoin ETFs before they became a significant force in the market.

The conversation also touched on the broader altcoin market, noting the significant dispersion in returns. While Bitcoin has made new all-time highs, many altcoins are still struggling, with some down 50%-70% from their peaks. This divergence is seen as unusual compared to previous bull markets where a rising tide lifted all boats.

With conflicting signals across timeframes and assets, the analysts suggested that traders need to be prepared for various scenarios and maintain a long-term perspective, as short-term volatility may obscure broader trends.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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