Bearish Days Ahead For Bitcoin And Ethereum, Here Are The Levels To Watch!

The post Bearish Days Ahead For Bitcoin And Ethereum, Here Are The Levels To Watch! appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

An analyst, anonymously known as Pentoshi, informs his 600,100 followers on Twitter that, according to his observations, Bitcoin has hit the $20,000 price area thrice in the last 30 days. 

The analyst feels that this price level will either lead the rally to move forward or cause it to plunge down further. 

Can we go up? Yes

Will these almost certainly get run and or lead into a nuke. Also yes. These almost always setup as a trap for longs that build over time thinking it's "titanium support"

— Pentoshi (@Pentosh1) August 23, 2022

When technical analysis is considered, if an asset hits a certain price area multiple times, it indicates that a breakdown is approaching. This is also due to the fact that around that particular price range the demand for an asset has declined.

Pentoshi further claims that retail traders most likely purchased Bitcoin at the peak of the latest uptrend in BTC, and thus, they are more likely to face a greater risk of losses in the market and would be desperate to sell their holdings after experiencing panic at the current price movements. 

The analyst claims, that though there are many who insist that they purchased Bitcoin at the bottom, exchanges have observed maximum purchases when Bitcoin was at $24,000.

$BTC going to take these lows imo

It's interesting to note that despite people claiming they bought the bottom most BTC changed hands at 24k

where spot was distributed pic.twitter.com/NPiwx0ksj9

— Pentoshi (@Pentosh1) August 20, 2022

Further, Pentoshi points out that the flagship currency is now selling below the 200-weekly moving average, which indicates that it has reached the bottom in its earlier trading cycles.

$BTC 1W 200 MA enjoyooorrsss pic.twitter.com/Jjss0mHLHs

— Pentoshi (@Pentosh1) August 21, 2022

At the time of publication, Bitcoin is trading at $21,435 whereas the 200-week moving average is selling above the $23,000 range

Next, the analyst talks about the second largest cryptocurrency by market cap, Ethereum. He alerts the traders that Ethereum is trading below its important resistance area, which indicates that there will be a massive bearish pull soon.

The story writes itself $ETH pic.twitter.com/UUjNy4GT8e

— Pentoshi (@Pentosh1) August 20, 2022

At the time of writing, Ethereum is selling at $1,635, after a slight push of 2.49% in the last 24hrs.