BTC and ETH Bounce Back from August Lows, with Dip Buyers Delivering

Key Insights:

• Bitcoin (BTC) and Ethereum (ETH) are up, with the crypto pair recovering from early losses.
• A quiet US economic calendar and a lack of FOMC member chatter have provided support despite the NASDAQ 100 Mini pointing to a bearish US open.
• However, technical indicators remain bearish, signaling strong resistance at $20,000 for BTC and $1,500 for ETH.

On Sunday, bitcoin (BTC) fell by 2.36% to end the week down 9.03% to $19,571. A bearish final hour of the session saw BTC fall to a new August low of $19,540.

Ethereum (ETH) slid by 4.29% to end the week down 11.80% to $1,427. Tracking the broader market, ETH slumped to a final hour low of $1,424.

BTC and ETH were under the influence of the NASDAQ 100. The NASDAQ 100 Mini was on the slide through the final hour of the UTC session. Currently, the NASDAQ 100 Mini is down 117 points, recovering from the deep red.

Crypto investors will have a quiet afternoon session, with no US economic indicators for the investors to consider. However, a lack of stats leaves BTC and ETH exposed to any hawkish FOMC member chatter.

From the crypto wires, investors will also need to look out for any court decision from the ongoing SEC v Ripple (XRP) case. A ruling in favor of Ripple would be crypto-positive. For Ethereum, Merge updates will also need consideration.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 1.83% to $19,928. A bullish morning saw BTC rise from an early low of $19,561 to a high of $20,058.

Bitcoin broke through the First Major Resistance Level (R1) at $19,980 before easing back.

Technical Indicators

A BTC hold above the $19,760 pivot would support another move through the First Major Resistance Level (R1) at $19,980 to test resistance at the morning high of $20,058.

BTC would need a bullish session for the NASDAQ 100 to deliver an extended rally.

An extended crypto rally would see BTC test the Second Major Resistance Level (R2) at $20,389 and resistance at $20,500. The Third Major Resistance Level (R3) sits at $21,018.

A fall through the pivot would bring the First Major Support Level (S1) at $19,351 into play. Barring an extended sell-off, BTC should steer clear of sub-$19,000. The Second Major Support Level at $19,131 should limit the downside.

However, the Third Major Support Level (S3), sitting at $18,502, could come into play should hawkish FOMC chatter fuel another NASDAQ 100 slide.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 50-day EMA, currently at $20,881.

Following last week’s bearish crosses, the 100-day EMA pulled back from the 200-day EMA, with the 50-day EMA sliding back from the 200-day EMA, delivering bearish price signals.

For the bulls, a BTC move through R1 ($19,980) and R2 ($20,389) would bring the 50-day EMA ($20,881) and R3 ($21,018) into view.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 3.47% to $1,476. A mixed start to the day saw ETH fall to an early low of $1,421 before rising to a high of $1,495.

ETH broke through the First Major Resistance Level (R1) at $1,484 before easing back.

Technical Indicators

ETH will need to hold above the $1,690 pivot to retarget the First Major Resistance Level (R1) at $1,484 and the Sunday high of $1,511.

However, a material shift in market risk appetite is needed to support an ETH return to $1,500. In the case of an extended rally, ETH will likely test the Second Major Resistance Level (R2) at $1,541 and resistance at $1,550.

The Third Major Resistance Level (R3) sits at $1,628.

A fall through the pivot would bring the First Major Support Level (S1) at $1,397 into play. However, barring another sell-off, ETH should avoid the Second Major Support Level (S2) at $1,367.

The Third Major Support Level (S3) sits at $1,280.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below the 50-day EMA, currently at $1,579.

The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA crossing through the 200-day EMA to deliver bearish signals.

An ETH move through R1 ($1,484) and R2 ($1,541) would give the bulls a run at the 50-day EMA ($1,579).

However, a further pullback of the 50-day EMA from the 200-day EMA would bring support levels into play.