Since the flash crash on 7th September 2021, the Bitcoin [BTC] price is consolidating. Altcoins including Ethereum and Ripple also coiled up with Bitcoin. Bitcoin shows an upward breakout while ETH and Ripple are still unclear.
Bitcoin Price in Tricky Position
In a single day, Bitcoin’s price fell down from $53,000 to $42,850. However, BTC has reached up to $46,883 due to the recovery rally. The Crypto was consolidating but showing a hike slowly.
Just above the $44,705 support level, Bitcoin has shown stabilization and restarting uptrend. While this move appears to be logical, the market makers might push BTC down to the demand zone, ranging from $41,461 to $39,147, before reversing the trend because it can lead to more liquidity. Investors need to be careful of the potential drop.
For the upside, To have a chance at retesting the $50,000 psychological level, BTC needs to breach through $46,833.
If the sale-off exacerbates, The retest to the demand zone ranging from $41,461 to $39,147 can turn bitter quickly producing a decisive close below $39,147 USD. This move will invalidate the bullish outlook and open the roads for more descent.
Ethereum Price Stuck in Limbo
Ethereum [ETH] on the other hand, is not showing any directional bias that would help its cause and consolidating between the $3,429 and $3,223 barriers. The smart contract token has to support up to $3,011.
Any short–term spike in selling pressure will not affect Ethereum. Investors can slice through the $3,429 USD resistance barrier to show an uptrend. If buyers can manage to flip the $3,524 hurdle into a support foothold, this new rally will receive a boost.
This kind of development will open up the roads for investors to proper ETH up to $4,000. While this is an optimistic outcome, the path has roadblocks at $3,716 and $ 3,326 before tagging the $4,000 psychological level.