BTC/USD takes a breather under 19,000, ETH/USD dips below 590
|BTC/USD
On Wednesday, 25th November, the BTC/USD trading pair continued trending sideways, staying in the red most of the day. The pair opened at 19,984 and began trending down right from the start of the trading day, sinking below 18,700 below 5:00 and 5:15 UTC. Being locally supported by the 50-period simple moving average on the hourly timeframe, the pair bounced up to 19,287 between 10:00 and 11:00 UTC. From 11:00 until 13:00 the pair moved very little, remaining between 19,200 and 19,400 for two hours.
A spike in volatility occurred between 13:00 and 14:00 UTC when the pair travelled above 19,500 and below 19,150. Closing in the red, the hourly candlestick triggered another intraday downswing, which continued through to 17:00 UTC and reached 18,900 but closed at 18.975. Between 17:00 and 18:00, the price dropped briefly below 18,900 but quickly bounced back above 19,000, being supported by the 50-period SMA on the hourly timeframe. Thus, the 17th hourly candlestick closed at 19,064, creating a hammer pattern and a potential for another upside fluctuation in the late hours of the day.
The day’s BTC price dynamics do not create much of a change in the larger picture on the daily timeframe but indicate a possibility of a downside reversal in the region between $18,800 and $19,500. The general picture remains strongly bullish, making a new Bitcoin all-time-high highly probable before the end of the month.
An intraday resistance level is forming at 19,400, with a local support level being present at 18,800. This corridor was the primary trading range for BTC/USD on 25th November, but the cross rate will not stay in it much longer, given the current high volatility levels.
ETH/USD
Opening 25th November at 606, ETH/USD spent the entire day below the open. The pair began trending down in the early hours of the day and reached 580.4 between 5:00 and 6:00 UTC, having settled below the 20-period and 50-period simple moving averages. Being supported by the daily uptrend and the continuing bullish Bitcoin market, the pair did not go lower but continued trading sideways, fluctuating between 582 and 605 for the rest of the day and steadying around 590 in the late hours of the day.
The Ether price dynamics of 25th November put on halt the rampant bullishness of the few earlier days without making any significant adjustments to the general bullish dynamics on the daily timeframe. The nearing Ethereum transition from its current proof-of-work consensus to a proof-of-stake one is increasing excitement around Ether, luring more people to lock up their 32 ETH in the Etherum 2.0 deposit contract to generate passive income through running a node.
The bullish market remains dominant for Ethereum. An intraday resistance level for ETH/USD is present at 620, a local support level is at 582. The pair has slipped below the 50-period and 20-period SMAs on the hourly timeframe, which increases the selling sentiment for Ether but most likely will not cause a substantial corrective move. Bitcoin remains a substantial motive factor for Ethereum’s price action, but the recent ETH/USD divergence from BTC/USD makes this influence less notable than before. Therefore, we can rightfully expect Ether’s price to be more dependent on Ethereum’s fundamentals in the future.
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