A BTC Return to $21,000 Would Signal Bullish BTC and ETH Sessions

Key Insights:

• Bitcoin (BTC) and ethereum (ETH) joined the broader market negative territory on Sunday.
• A lack of external market forces left investors to lock in profits ahead of a busy week.
• The technical indicators remain bullish, signaling upward price trajectories.

Ethereum (ETH) fell by 3.63%. Following a 1.09% loss on Saturday, ETH ended the week down 1.42% to $1,568.

After a mixed start to the day, ETH rose to a mid-morning high of $1,639. However, coming up short of the First Major Resistance Level (R1) at $1,656, ETH slid to a final-hour low of $1,564. ETH fell through the First Major Support Level (S1) at $1,610 and the Second Major Support Level (S2) at $1,592 to end the day at $1,568.

On Sunday, bitcoin (BTC) fell by 1.79%. Reversing a 0.70% gain from Saturday, BTC ended the week up 1.38% to $20,932. Notably, BTC saw a three-day winning streak end. BTC wrapped up the day at sub-$21,000 for the first time in three sessions.

A mixed start to the day saw BTC rise to an early high of $21,378. Coming up short of the First Major Resistance Level (R1) at $21,489, BTC slid to a final-hour low of $20,900. BTC fell through the First Major Support Level (S1) at $21,119. However, finding support at the Second Major Support Level (S2) at $20,924, BTC ended the day at $20,932.

Investors continued to lock in profits, with US economic indicators and Fed monetary policy focal points. The influence of the Fed on investor sentiment continued to support the crypto market correlation with the NASDAQ Composite Index.

Through the final hour of the Sunday session (UTC) and this morning, the NASDAQ Mini weighed on BTC and ETH. The Index was down through most of the morning before recovering.

However, while the US midterms are taking place this week, the outcome of the elections should have limited to no impact on crypto regulations. Bipartisan moves to introduce crypto legislation leave both sides of the aisle working toward a crypto regulatory framework.

Today, there are no US economic indicators for investors to consider. The lack of stats leaves FOMC member chatter and the NASDAQ Composite Index to influence. This morning, the NASDAQ 100 Mini was up 23.25 points.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 0.03%% to $1,568. A mixed morning saw ETH rise to an early high of $1,596 before falling to a low of $1,546.

Technical Indicators

ETH needs to move through the $1,590 pivot to target the First Major Resistance Level (R1) at $1,617 and the Sunday high of $1,639. An ETH return to $1,600 would signal a bullish afternoon session. However, moves through the US session will be NASDAQ Composite Index-dependent.

In the event of an extended rally, the Second Major Resistance Level (R2) at $1,665 and $1,700 would likely come into play. The Third Major Resistance Level (R3) sits at $1,740.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,542 in play. However, barring a data-fueled sell-off, ETH should avoid sub-$1,500. The Second Major Support Level (S2) at $1,515 should limit the downside.

The Third Major Support Level (S3) sits at $1,440.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 100-day EMA, currently at $1,528. The 50-day EMA flattened on the 100-day EMA, while the 100-day EMA widened from the 200-day EMA, delivering bullish signals.

A move through the 50-day EMA ($1,578) would support a breakout from R1 ($1,617) to target R2 ($1,665) and $1,700. However, a failure to move through the 50-day EMA ($1,578) would leave S1 ($1,542) in play.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.93% to $20,738. A choppy morning saw BTC rise to an early high of $21,083 before sliding to a low of $20,605.

BTC fell through the First Major Support Level (S1) at $20,762.

Technical Indicators

BTC needs to move through S1 and the $21,070 pivot to target the First Major Resistance Level (R1) at $21,240 and the Sunday high of $21,378. A return to $21,000 would signal a possible breakout session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $21,548 and resistance at $22,000 would likely come into play. The Third Major Resistance Level (R3) sits at $22,026.

Failure to move through S1 and the pivot would leave the Second Major Support Level (S2) at $20,592 in play. Barring an extended sell-off, BTC should avoid the Third Major Support Level (S3) at $20,114.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 100-day EMA, currently at $20,445. The 50-day EMA flattened on the 100-day EMA, while the 100-day EMA widened from the 200-day EMA to deliver bullish signals.

A breakout from the 50-day EMA ($20,758) and S1 ($20,762) would give the bulls a run at R1 ($21,240) and $21,500. However, a failure to move through the 50-day EMA ($20,758) and S1 ($21,762) would bring S2 ($20,592) into view.