Bitcoin (BTC), Ethereum (ETH) Forecast:
- BTC/USD prices stabilize after falling below the 20-day MA (moving average)
- Ethereum finds temporary support above $1,550 as bulls’ eye $1,600.
- Silvergate becomes the latest cryptocurrency firm to fall into troubled waters. The digital-asset based bank falls victim to FTX contagion.
Recommended by Tammy Da Costa
Get Your Free Bitcoin Forecast
Bitcoin and Ethereum prices have stabilized after Friday’s plunge that occurred on rising fears over crypto-based bank, Silvergate. After announcing a 40% reduction in its workforce, the firm announced a “risk-based” decision to discontinue its Exchange Network.
As Coinbase, Galaxy Digital and Bitstamp reacted to the viability concerns by suspending payments and withdrawals through the Silvergate payment network.
The combination of negative sentiment and rising rate expectations weighed on digital assets, pushing BTC below $20-day MA (moving average) now holding as resistance around $23,600. With prices extending declines into the weekend, a rebound off the $22,000 psychological level helped limit losses.
As the largest digital asset (in terms of market capitalization) returned to a narrow range of support and resistance, Ethereum dropped below $1,600 before finding support at $1,550.
Bitcoin (BTC/USD) Technical Analysis
While today’s price action has remained subdued, the recent decline has driven the CCI (commodity channel index) into oversold territory. With Bitcoin prices currently trading sideways around the $22,500 mark, a break of $22,000 could make BTC/USD vulnerable to a sharper pullback.
Bitcoin (BTC/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
Below this level is the February low which could open the door for bearish continuation toward $20.000.
Ethereum (ETH/USD) Technical Analysis
As Ethereum rises above another big spot of support at $1,550, the next barrier of resistance has formed at $1,600 which could pave the way for a move toward the 50-day MA (moving average) at $1,610.
Ethereum (ETH/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
Trade Smarter – Sign up for the DailyFX Newsletter
Receive timely and compelling market commentary from the DailyFX team
Subscribe to Newsletter
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
