After a large loss, cryptocurrency markets rallied back yesterday, with Bitcoin and Ethereum up 15% and 17%, respectively, after a big decline. El Salvador’s president, Nayib Bukele, recently released rendered graphics of a planned Bitcoin mining unit that would be powered by the country’s active volcanoes (the thermal energy generated from volcanoes can be converted into electricity, and in turn be used to power mines).
Even though Major of the coins seem to have bounced back yesterday, the move did not last that long and bears took incharge once again.
Yesterday, however, as sellers sold into strength, prices retraced the whole rise. Traders took advantage of the majority of cryptocurrencies’ oversold circumstances. After the shakeout, which pushed Bitcoin’s price to over $30,000, buyers were active.
Bitcoin and Ethereum Price Levels
Bitcoin managed to recover off the $28,800 support and close the candle in a bullish ‘hammerhead’ pattern. (A hammer candlestick pattern is a form of bullish reversal pattern.) The next level of resistance is around $36,600. Unless the price increase is followed by a volume influx, a rejection in that area is possible.
After appearing to have bottomed out, the relative strength index (RSI) has also risen sharply. After yesterday’s dip, the positive buyback demonstrates the buyer’s interest in bitcoin.
However, the pricing remains to be in the $30,000 to $38,000 range.
The price of ETH stayed well above the 200MA and climbed back above $2,000 with ease. A daily close above $2,000 would be advantageous and might lead to good price movement in the days ahead.
The next point of resistance for ETH is around $2,100, where it is expected to be rejected. However, volume is minimal, and a volume push is needed to keep the price trend going.