The cryptocurrency market took another downward turn after plummeting through the month of May and trading sideways through the first week of June. On June 9, Bitcoin price started plummeting and eventually bounced off the support level at the $6,100 mark. This is the second time Bitcoin price has hit the $6,000 zone since the beginning of the year. As of press time, Bitcoin is trading around the $6,400 level.
Looking at the BTC/USD chart, Bitcoin failed to break the resistance line around the 0.618 Fibonacci level and re-tested the February 6 low around the 1.00 Fibonacci level. The MACD indicates that trading is currently in downward momentum. This means that Bitcoin could go to consolidation mode before deciding on its next big move. The RSI is slowly bouncing back from the oversold region after hitting the 26 oversold levels. This indicates that traders are currently buying back in after this massive slump. Based on these, Bitcoin price could trade horizontally for consolidation in the coming days. If RSI holds strong on the upward bounce from the oversold level with volume confirmations reversing the MACD momentum, Bitcoin could head to decent price recovery.
On the ETH/BTC trading pair, Ethereum seems to be able to bounce from the 0.786 Fibonacci level and currently settle on the 0.618 Fibonacci level. As of press time, ETH trades at 0.0742 BTC. Trend lines coincide at the 0.076 BTC mark, which is also the 0.50 Fibonacci level. The price action in the coming days heading toward this point will be crucial.
The MACD crossed below the signal line indicating that momentum is currently downward. The RSI is heading towards the oversold region, but is still a few points above it. This means that Ethereum price could still go down unless volume trades favor the buying sentiments. Trading over Bitcoin, Ethereum currently sits at a crucial point, which will be determined in the coming days.
On the ETH/USD trading pair, ETH is currently trading at $483. Ethereum price failed to hold at the 0.5 and 0.618 Fibonacci levels, which resulted to a drop around the 0.786 Fibonacci level acting as support. The support line at the 0.786 Fibonacci level coincides with the line that acted as resistance level last November 2017.
The MACD crossed below the signal line, which indicates that momentum is currently downward. The RSI, on the other hand, shows a bounce from the oversold region. If there will be volume confirmation in the coming days in favor of the buying sentiment, RSI could go back to higher levels, and MACD could cross back above the signal line. This scenario could lead to a healthy recovery in Ethereum price over the USD.
Overall, Bitcoin and Ethereum are currently struggling to hold their respective grounds. More buying sentiments will be needed before a confirmed bull run could come into play again.
(DISCLAIMER: This is not financial advice. The analysis and recommendations provided here are based on my own research and personal opinion. Trade wisely!)