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There could be an ascending channel breakout if Bitcoin consolidates



Over the past week, the altcoin price has dropped significantly, and investors interested in Bitcoin (BTC) have seen the value of their portfolio affected.

Initially, the price of Ether (ETH) followed Bitcoin higher as the top-ranked digital asset surged above the $ 12,000 resistance level but as BTC continued to slowly push Ether higher, it struggled to cross the $ 400 support.

Weekly price chart of the cryptocurrency market. Source: Coin360

Ether’s loss of momentum and the correction of altcoins has led some cryptocurrency traders to tweet that the altcoin season is over and many are citing bearish price action in the ETH / BTC pair as evidence for the point of view. this.

1 week ETH / BTC chart. Source: TradingView

Looking at the weekly chart of ETH / BTC, traders will notice that the pair is on the verge of falling below the ascending trend line and the high volume VPVR node at 0.027294 sats.

Losing this level opens the door for a further decline to 0.024519 sats and below this Ether is approaching a yearly low near 0.0160 sats.

Daily chart ETH / BTC. Source: TradingView

On the daily timeframe, we can see that the loss of support for 0.032385 sats pushes the price of Ether into the VPVR gap from 0.032385 sats to 0.029536 sats.

The bleeding is likely to continue until the price reaches the 0.029536 sats level, but the current daily candle is starting to form a double bottom and it looks like there is an oversold bounce going on as the indicator. RSI is rising from 28 daily timeframe.

The signal line and the MACD of the moving average convergence divergence are still sharply declining, and the absence of strong buying reduces the possibility of a short-term trend reversal.

Perhaps if Bitcoin price enters a consolidation period in the next few days, the ETH / BTC pair may recover some lost points but this looks unlikely at the moment.