Digital assets had a spectacular year, and in 2022 we shall see cryptocurrencies reach higher levels.
In 2021, cryptocurrency investors had another roller-coaster journey. Almost every cryptocurrency, from bitcoin to dogecoin, set new highs and produced massive gains. However, in May, the whole market’s worth was wiped away in just seven days. In September, China’s crackdown against cryptocurrency grew to include a ban on all transactions.
El Salvador made bitcoin legal money in 2021, meme tokens soared, and an NFT sold for $69 million.
Bitcoin (BTC)- fell below $48,800 and began a new downward trend. BTC dipped below the $48,500 and $47,500 levels, moving into a bearish zone.
Below $47,000, the drop has accelerated. The price has hit a bottom at $46,120 and is presently consolidating losses. Bitcoin is currently trading below $48,000 as well as the 100 hourly simple moving average. On the upside, an immediate barrier is at the $46,600 level.
The current plunge from the $48,123 swing high to $46,120 low is nearing the 23.6% Fib retracement level. Near the $47,200 mark, the first major resistance is found.
On the hourly chart of the BTC/USD pair, a significant descending channel is emerging with resistance at $47,150. The trend line is approaching the 50% Fib retracement level of the latest dip from the $48,123 spike high to the $46,120 low.
A decisive break over the $47,500 resistance level might kick-start a new uptrend. The next significant barrier is at $48,500, where the bears may appear. If the price rises any more, it may reach $50,000.
Ethereum (ETH)- has been unable to maintain its price above the $3,880 and $3,850 support levels. ETH continued to fall, trading below the critical $3,750 support level.
The price fell sharply below $3,700 and closed below the 100 hourly simple moving average. It’s presently consolidating losses after trading as low as $3,602. On the upside, the $3,655 level represents an immediate barrier.
The current slide from the $3,827 swing high to $3,602 low is nearing the 23.6% Fib retracement level. The next significant stumbling block is located at $3,715 in price.
On the hourly chart of ETH/USD, a significant negative trend line with resistance near $3,715 is also formed. The trend line is approaching the 50% Fib retracement level of the latest slide from the $3,827 swing high to the $3,602 low. The price needs to break over the $3,715 resistance to begin a solid recovery.
The price might increase to $3,850 or the 100 hourly simple moving average in the above scenario.
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Trading on cryptocurrency carries a high level of risk, and may not be suitable for all investors.
The high degree of leverage can work against you as well as for you. Before deciding to trade with MX Global, you should carefully consider your investment objectives, level of experience and risk appetite.
The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
You should be aware of all the risks associated with cryptocurrency trading, and seek advice from an independent financial advisor.
Any opinions, news, research, analyses, prices or other information discussed in this presentation or linked to from this presentation are provided as general market commentary and do not constitute investment advice.
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