Bitcoin and Ethereum must fight post-ATH sales – Crypto Briefing

The cryptocurrency market started this week with a drop in prices following Bitcoin’s recent all-time highs. Although Bitcoin and Ethereum have recovered significantly in the past 24 hours, both cryptocurrencies are holding above crucial support levels that may determine their next destination.

Bitcoin Must Hold Above Key Support

Bitcoin’s uptrend appears to have reached exhaustion after prices hit a new all-time high of $ 24,400 on December 20. Since then, the price of the cryptocurrency has fallen by more than 6.50%. The decline has pushed Bitcoin to a critical support level which will determine whether prices can fall further.

Based on IntoTheBlock’s IOMAP model, the $ 22,660 support barrier is of great significance to the trend of Bitcoin. Transaction history shows that nearly 478,000 addresses have already bought more than 560,000 BTC around this price.

Such a vital demand area could absorb some of the recent selling pressure, preventing prices from further falling. On the other hand, if that support level breaks, it could be catastrophic for investors betting on the upside. The IOMAP cohorts show that the next major area of ​​interest reinforcing Bitcoin’s uptrend is around $ 20,500.

Should the $ 22,660 support break, BTC holders should expect their investments to plunge an additional 10%.

Bitcoin selling pressure is increasing

Given the high likelihood of a more pronounced correction, it looks like BTC whales have taken advantage of recent price action to turn a profit. The Santiment holder distribution chart shows that the selling pressure behind Bitcoin has increased significantly over the past few days.

Indeed, the number of addresses from 1,000 to 10,000 BTC has plunged. About 31 whales left the network or redistributed their tokens, which represents a drop of 1.40% in such a short period.

At first glance, the downward trend in the number of large investors on the Bitcoin network may seem insignificant. However, when you consider that these whales hold between $ 23 million and $ 230 billion in BTC, the sudden spike in sales orders can translate into billions of dollars.

If the selling frenzy continues, Bitcoin may have the ability to break through the support level of $ 22,660 and fall to $ 20,500.

Despite this grim worst-case scenario, the unpredictability of the cryptocurrency market means that the bullish outlook is not out of the question.

The IOMAP model shows that Bitcoin will encounter little or no resistance in the future. The only sizable supply wall is at $ 23,500, where around 300,000 addresses get over 90,000 BTC.

In light of this fact, it may not take enormous buying pressure to invalidate the pessimistic outlook and lead to new all-time highs.

Ethereum ready to move to $ 800

Ethereum has entered a downtrend in the past five days, causing its price to drop more than 12%. ETH recently went from a new annual high of $ 678 to $ 585.

Despite the large losses suffered in such a short period of time, ETH looks poised for higher highs. The development of an ascending triangle on the ETH 3-hour chart suggests that a spike in buying pressure around current price levels could see Ethereum revisit recent highs and advance further.

Indeed, Ethereum prices could rise by almost 30% by breaking through the resistance barrier of $ 620. This target is determined by measuring the distance between the two highest points of the triangle and adding it to the break point.

The TD Sequential indicator suggests Ethereum is tied at new annual highs. This technical index presented a buy signal in the form of a nine green candlestick within the same time frame.

If validated, ETH prices could rise up to four 3 hour candlesticks or start a new countdown to the upside.

A look at Ethereum’s 3-hour chart reveals that the TD setup accurately anticipated local highs and bottoms on this altcoin’s trend. The buy and sell signals that this indicator presented since the beginning of December have all been validated, leading to significant price movements.

Thus, the current optimistic forecast will likely be valid regardless of the “extreme” levels of greed among market participants.

The cryptocurrency market is changing

Bitcoin has recently hit all-time highs and is producing largely bullish sentiment among investors.

This has led some of the industry’s most prominent analysts to suggest it is time to turn a profit. For example, trading veteran Peter Brandt has publicly stated that he left 20% of his Bitcoin position because bullish rallies are often accompanied by “short-term twists.”

As several bearish signals appear on the higher time frames, it looks like the fate of Bitcoin and Ethereum will be determined by two barriers to demand. Bitcoin bulls need to prevent prices from falling below $ 22,660 to avoid further losses. Meanwhile, Ethereum will likely take a big plunge if the $ 595 support doesn’t hold.

As long as these price hurdles continue to persist, the uptrend will remain intact and the top two cryptocurrencies by market cap will aim for higher highs.

Disclosure: At the time of writing, this author owns Bitcoin and Ethereum.