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The pioneering cryptocurrency had another difficult week. Its price was able to rise more than 5% after the weekly open, going from a low of $ 9,300 to a high of $ 9,800. But as the week progressed, Bitcoin slashed all incurred gains to finish 1.44% lower on Friday.
On June 24 alone, BTC plummeted 4.4% to hit a low of $ 9,210. However, a few hours before Wednesday’s close, it rose 1% and ended the day at $ 9,310. The bears continued to have full control over prices the next day, which saw Bitcoin erase $ 250 of its value in one hour.
In fact, the flagship cryptocurrency fell to $ 9,010 on June 25, but investors seem to have enjoyed the low prices to return to the market. As buying pressure increased, Bitcoin was able to close on Thursday at $ 9,260.
Friday, June 26, was also seen a downward price action as BTC fell to a low of $ 9,055 during the first half of the day. But after 15:00 UTC, the bulls stepped in and their price rose 1.3% to close at $ 9,170.
Despite mounting selling pressure, Bitcoin remains contained within an ascending triangle on its 1-day chart. The hypotenuse of this pattern, as well as the Fibonacci retracement level of 23.6% to $ 8,900 (measured from the March 13 low of $ 3,620 to the June 1 high of $ 10,500), currently provide strong support.
Passing this critical area could trigger a 18.5% decline that sends Bitcoin down to $ 7,700 or less. Meanwhile, an increase in demand around current price levels that allows BTC to bounce off this barrier may cause it to rise to $ 10,000.
Ethereum keeps key support above for another week
Like Bitcoin, Ethereum also started the week off on the right foot. After the opening on Monday, June 22, the smart contracts giant rose nearly 8.5% to as high as $ 247. But just a few hours before the close of the day, it fell 1.5% to end at $ 243.4.
Monday’s rising price action did not extend until the next day, as Ether remained stagnant. Its price was mainly traded between $ 245 and $ 242, and closed on June 23 at $ 243.50.
Nonetheless, volatility struck back on June 24, resulting in one of the wildest price moves of the week. Ethereum increased by almost 3% to as high as $ 250, but this resistance barrier was able to hold. The rejection caused Ether to plummet 6.20% to close at $ 234.80 on Wednesday.
The next two days of the week were also characterized by a downward trend that caused Ethereum to close on Friday, June 26, 0.70% more than the weekly open at $ 230.
While the $ 225 support level continues to hold, over time it is weakening. Investors should pay close attention to this support area because an increase in sell orders could allow Ether to break below it. If this were to happen, the second largest cryptocurrency by market cap could drop to $ 200.
High volatility is underway
June 22 and June 24 were quite significant days for Bitcoin and Ethereum. Their prices were able to rise earlier in the week, but then the bears took control of the price action. Regardless of volatility, these cryptocurrencies did not provide a clear signal of what the future holds from a macro perspective.
For this reason, investors should remain patient waiting for Bitcoin to break the $ 8,900 support or the $ 10,000 resistance level. A closed daily candlestick below or above this area will determine where BTC is headed next. For Ethereum, the critical area to watch out for is defined by the $ 225 support and the $ 250 resistance level.
Konstantin Anissimov, executive director at CEX.IO
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and operations are at your own risk, and any loss you may incur is your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrency or digital asset, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock / Willyam Bradberry
