Upbeat US Stats could Send BTC back to $25,000 and ETH to $2,000

Key Insights:

• Bitcoin (BTC) and Ethereum (ETH) continue to struggle, with BTC at sub-$24,000 testing investor sentiment.
• Economic indicators from the US and China have raised some red flags, testing the appetite for riskier assets.
• Despite BTC and ETH seeing red for a second consecutive day, the technical indicators remain bullish and support a return to August highs.

On Monday, bitcoin (BTC) and Ethereum (ETH) responded to disappointing economic indicators from China and the US.

Fears of a global economic recession grew, sending crude oil prices and riskier assets into the red. Despite the bearish mood, the NASDAQ wrapped up the day in positive territory to limit the damage. BTC and ETH extended losses after the US closing bell.

Through today’s morning session, the bearish mood lingered with the economic calendar on the quieter side. A continued downtrend in crude oil prices reflected the bearish mood, with the NASDAQ 100 Mini also struggling ahead of the US opening bell.

Later today, US economic indicators will draw interest again, with US industrial production likely to influence. Weak numbers would bring support levels into play. However, with plenty of uncertainty over the next Fed monetary policy decision, FOMC member chatter will also need monitoring.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.59% to $23,959.

A mixed morning saw BTC strike an early high of $24,247 before falling to a low of $23,810.

Technical Indicators

BTC needs to move through the $24,364 pivot to target the First Major Resistance Level (R1) at $24,941 and the Monday high of $25,203.

However, BTC would need a shift in risk sentiment to support a breakout from $24,500.

An extended crypto rally would see BTC test the Second Major Resistance Level (R2) at $25,783 and resistance at $26,000. The Third Major Resistance Level (R3) sits at $27,203.

Failure to move through the pivot would leave the First Major Support Level (S1) at $23,519 in play. Barring an extended sell-off, BTC should steer clear of sub-$23,000 and the Second Major Support Level (S2) at $22,944.

The Third Major Support Level (S3) sits at $21,523.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat at the 50-day EMA, currently at $24,027.

The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA widened from the 200-day EMA, delivering mixed price signals.

A breakout from the 50-day EMA would support a move through $24,500 to bring the resistance levels into play.

However, a fall through the 100-day EMA ($23,675) would likely see BTC test S1 ($23,519) before any recovery.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 0.53% to $1,890.

A choppy morning saw ETH rise to an early high of $1,915 before falling to a low of $1,857.

Technical Indicators

ETH needs to move through the $1,927 pivot to target the First Major Resistance Level (R1) at $1,986 and the Monday high of $2,013.

However, ETH would also need a shift in risk sentiment to support a breakout from $1,950.

An extended crypto rally would see ETH test the Second Major Resistance Level (R2) at $2,071 and resistance at $2,100. The Third Major Resistance Level (R3) sits at $2,215.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,842 in play. Barring an extended sell-off, ETH should steer clear of sub-$1,800 and the Second Major Support Level (S2) at $1,788.

The Third Major Support Level (S3) sits at $1,639.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Going into the afternoon session, Ethereum sat above the 50-day EMA, currently at $1,875.

The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, the signals price positive.

A hold above the 50-day EMA would support a move through $1,950 to bring the resistance levels into play.

However, a fall through the 50-day EMA and S1 ($1,842) could see ETH test the 100-day EMA ($1,790) and S2 ($1,788).