Bitcoin and Ethereum – Weekly Technical Analysis – May 24th, 2021

Bitcoin

Bitcoin, BTC to USD, tumbled by 25.42% in the week ending 23^rd May. Following on from a 20.06% loss in the previous week, Bitcoin ended the week at $34,747.0.

A mixed start to the week saw Bitcoin rise to a Monday high intraweek high $46,796.0 before hitting reverse.

Falling short of the first major resistance level at $56,118, Bitcoin slid to a Wednesday intraweek low $29,563.0.

The extended sell-off saw Bitcoin fall through the first major support level at $40,549 and the second major support level at $34,500.

Bitcoin also fell through the 23.6% FIB of $50,473 and the 38.2% FIB of $41,592.

Finding mid-week support, however, Bitcoin briefly broke back through the 38.2% FIB before sliding back into the deep red.

5 days in the red that included a 14.38% slump on Wednesday delivered the downside for the week.

For the week ahead

Bitcoin would need move through the $37,045 pivot and the 38.2% FIB of $41,592 to support a run the first major resistance level at $44,508.

Support from the broader market would be needed for Bitcoin to break out from $40,000 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended breakout, Bitcoin could test resistance at the 23.6% FIB of $50,473 before any pullback. The second major resistance level sits at $54,268.

Failure to move through the $37,035 pivot would bring the first major support level at $27,275 and the 62% FIB of $27,237 into play.

Barring another extended sell-off, Bitcoin should steer clear of sub-$20,000 support levels. The second major support level sits at $19,802.

At the time of writing, Bitcoin was up by 1.03% to $35,106.1. A mixed start to the week saw Bitcoin fall to an early Monday low $34,733.0 before rising to a high $35,895.0.

Bitcoin left the major support and resistance levels untested early on.

Ethereum

Ethereum slumped by 41.43% in the week ending 23^rd May. Following on from an 8.73% decline in the previous week, Ethereum ended the week at $2,099.58.

A mixed start to the week saw Ethereum rise to a Monday intraweek high $3,590.0 before hitting reverse.

Falling short of the first major resistance level at $4,136, Ethereum slid to a Sunday intraweek low $1,728.00.

The extended sell-off saw Ethereum fall through the week’s major support levels.

Ethereum also fell through the 23.6% FIB of $3,369 and the 38.2% FIB of $2,740.

Finding support at the 62% FIB of $1,725, Ethereum moved back through to $2,000 levels to reduce the deficit.

5-days in the red that included a 27.61% slide on Wednesday delivered the downside.

For the week ahead

Ethereum would need to move through the pivot at $2,473 to bring the 38.2% FIB of $2,740 and the first major resistance level at $3,217 into play.

Support from the broader market would be needed, however, for Ethereum to break back through to $3,000 levels.

Barring an extended crypto rally, the first major resistance level and the 23.6% FIB of $3,369 would likely cap any upside.

In the event of an extended breakout, Ethereum could test resistance at $4,000 before any pullback. The second major resistance level sits at $4,335.

Failure to move through the pivot at $2,473 would bring the 62% FIB of $1,725 and the first major support level at $1,355 into play.

Barring another extended sell-off in the week, Ethereum should steer clear of sub-$1,000 levels. The second major support sits at $611.

At the time of writing, Ethereum was up by 0.56% to $2,111.44. A mixed start to the week saw Ethereum rise to an early Monday high $2,207.00 before falling to a low $2,072.15.

Ethereum left the major support and resistance levels untested at the start of the week.