In a tweet on Sunday, on-chain analytics firm Santiment Feed reveals that it expects the crypto markets to rally again as short trades pile up on exchanges following the crash over the weekend that has brought fear in the market to levels last seen in June.
“After Bitcoin fell below $20.9k and Ethereum below $1,540 yesterday, markets have rebounded a bit. Exchanges are seeing high levels of short trades coming in, as people fear drops to June levels again. As long as they bet against markets, there is a higher chance of a rise.”
— Santiment (@santimentfeed) August 21, 2022
It is worth noting that June was arguably the worst month in Bitcoin’s history. Bitcoin plummeted by a whopping 38%. The lackluster price action resulted from worsening macroeconomic conditions combined with the collapse of several crypto lending firms following the LUNA debacle in May. However, following the slump in June, the markets had an impressive run in July that saw Bitcoin rise by over 17%.
Notably, the release of the Federal Open Market Committee (FOMC) minutes from its meeting in July led to panic in the markets over the weekend, as the minutes revealed the Fed’s desire to continue raising rates. Consequently, Bitcoin dropped below $21k, while Ethereum dropped below $1,600, both assets doing so for the first time in weeks.
However, following the market dump during the weekend, the crypto markets have shown some signs of a resurgence on Monday. Most of the top 10 coins by market capitalization made modest gains in the early Asian trading session.
Over the last nine months, Bitcoin and the broader crypto market have become more sensitive to dollar strength as the Fed raises rates to combat rising inflation. Consequently, the emerging market has continued to move in tandem with perceived risk assets like tech stocks.
Bitcoin price analysis
Bitcoin price started amajor declinebelow the $23,000 support zone. BTC gained bearish momentum below the $22,500 and $22,200 support levels.
The decline was such that the price settled below the $22,000 support zone. It even spiked below the $21,000 level and traded as low as $20,797. The price is now correcting losses above the $21,000 level. It is now trading below the $22,000 level and the100 hourly simple moving average.
Recently, there was a push above the $21,250 level. However, bitcoin price struggled near the 23.6% Fib retracement level of the recent decline from the $24,414 swing high to $20,797 low.
On the upside, an immediate resistance is near the $21,500 level. There is also a major bearish trend line forming with resistance near $21,550 on the hourly chart of the BTC/USD pair. The first major resistance on the upside sits near the $22,000 level and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
The Fear and Greed Index is29 Fearand is +2 from Sunday’s reading of 27 Fear.
Bitcoin’s 52 week price range is $17,611-$69,044.
The price of Bitcoin on this date last year was $49,250.54.
The average price of BTC for the last 30 days is $23,063.9 and its -8.3% over the same duration.
Hourly MACD – The MACD is now gaining pace in the bearish zone
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level
Major Support Levels – $21,250, followed by $20,800
Major Resistance Levels – $21,550, $22,000 and $22,650
Ethereum price analysis
Ethereum started amajor declinebelow the $1,700 level. ETH traded below the $1,650 support zone to move further into a bearish zone.
It opened the doors for a move below the $1,600 level. Finally, the price traded as low as $1,524 before the bulls appeared. It started an upside correction and traded above the $1,580 level. There was a break above a connecting bearish trend line with resistance near $1,580 on the hourly chart of ETH/USD.
Ether price climbed above the 23.6% Fib retracement level of the key decline from the $1,878 swing high to $1,524 low. However, the bears were active near the $1,650 zone.
The price is now trading below $1,650 and the100 hourly simple moving average. An immediate resistance on the upside is near the $1,625 level. The first major resistance is now forming near the $1,650 level. The next major resistance is near the $1,700 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
Ether’s 52 week price range is $883.62-$4,878.
The price of ETH on this date in 2021 was $3,243.49.
The average price of ETH for the last 30 days is $1,700.12 and its +5.46% during the same time frame.
Hourly MACD–The MACD for ETH/USD is now gaining momentum in the bearish zone
Hourly RSI–The RSI for ETH/USD is now below the 50 level
Major Support Level – $1,525
Major Resistance Level – $1,650
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