CryptoCurrency News

Bitcoin Edging Higher While Ethereum Is Pressured by Resistance

By September 16, 2020 No Comments

Konstantin Anissimov, Executive Director at CEX.IO

On 15th of September, Bitcoin continued its steady growth after breaking through its sideways trend against USD on Monday. The BTC/USD quote added $135 or 1.26% on Tuesday. Meanwhile, Ethereum lost considerably on Tuesday – $12.27 or 3.25%. The smart-contract pioneer has come under the pressure from the daily resistance level at $378.

Bitcoin reached the 20-day SMA on Tuesday, September 15th, finishing the day at $10,826.50. The Tuesday session proved that Bitcoin is on the rebound course after the early-September losses. On the hourly chart the bullish flag formation formed on Tuesday, which is expected to convert into the next bullish price action later this week. At 9:00 UTC Bitcoin began its move off the local support at $10,667 and reached $10,940 by 12:00. Then a correction followed, taking the pioneer cryptocurrency to $10,799 at the end of Tuesday’s session.

Bitcoin may still come under pressure from the 50-day SMA at around $11,200 this week, but there is no serious technical resistance until $11,625. Therefore, Bitcoin is likely to reach this price level by the 20th of September.

Ethereum, on the contrary, is under much more substantial pressure from the daily resistance level at $378. At the start of Tuesday’s trading session at 2:00 UTC Ethereum attempted to break above it, but the hourly candlestick finished as a shooting star, giving only more stimulus to a downside move, which saw ETH close Tuesday’s session at $365. 

Currently, there is very frail support for Ethereum, and it looks very vulnerable to further losses. There is a bit of a backing at $360, but it will not stand if the sellers come in full force. On top of that a descending triangle is forming on the 4-hour chart. Therefore, Ethereum holders should be wary of further near-term losses.

What to Expect Later This Week

Bitcoin is on a clearly identifiable upside course, and betting against it in the mid-term period will be a sure way to losses. To be cautious, it will be reasonable to expect BTC to reach $11,200 later this week, but in case bullish sentiment increases, the price may have reached the weekly resistance level at $11,625 by the 20th of September.

Ethereum looks much less certain. Although being under substantial pressure, ETH will likely stay below $378, Bitcoin edging higher at a fast pace could lend Ethereum some support and get it off its downward course. But still, it is more likely ETH will finish this week at around $370 – $380 dollars.