HomeLive CommentsBitcoin and Ether undergo sudden pullback as consolidation phase commences

Bitcoin and Ether undergo sudden pullback as consolidation phase commences

The cryptocurrency markets saw a sharp downturn in today’s Asian session. The decline doesn’t seem to be triggered by any specific event and might be amplified by the typically low liquidity on Mondays in the Asian markets. Another contributing factor could be profit-taking by traders following a recent strong bull run, especially with the impending FOMC rate decision looming on Wednesday.

Technically speaking a short term top should be in place at 44727 in Bitcoin. Consolidations should follow in the near term, and deeper pull back cannot be ruled out. But downside should be contained by 36710 cluster support (38.2% retracement of 24896 to 44727 at 37151) to bring rebound. Larger uptrend from 15452 is expected to resume at a later stage.

As for Ethereum, a short term top is in place at 2402, and more consolidative trading would be seen in the near term. There is risk of deeper pull back from outlook will stay cautiously bullish as long as 1984.4 support holds, which is close to 55 D EMA (now at 2017).

However, the larger outlook of Ethereum is less bullish, as it’s just capped by 38.2% retracement of 4863.7 to 878.5 at 2400. Break of above mentioned 1984.4 support will indicate rejection by 2400 fibonacci level, and keeps medium term outlook neutral at best.

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