The New Support And Resistance Levels

They are very volatile, but it is always possible to identify the main trend and see where the price is likely to find, whether to buy support or sell resistance.

Cryptocurrencies may differ from what has been traded on world markets so far, but their pricing model is as old as any asset and currency that can be named. Easy to position up, down and sideways. You don’t need a dissertation on decentralized finance to see what’s going on.

Nice to see the price. You can override the story told by a specific password for a few minutes. Buyers and sellers of Bitcoin and Ethereum, or new ones you want to follow, leave daily and weekly patterns.

From a low of 30,000 in June/July to a high of 68,000 in early November, that’s a huge increase. Note that the Relative Strength Index (RSI, above the price chart) diverges negatively from October highs to November highs.

This is confirmed by the negative appearance of the indicators of the convergence / divergence of the moving averages (below the chart). A few days after this became clear, the Bitcoin price dropped below its 50-day moving average (blue line).

We see that the cryptocurrency will rise slightly first in March/April and then in October/November and will face resistance of over 60,000. This is a new place of resistance. Buyers took control for just under $30,000 in June – there’s support.

The negative divergence between RSI, MACD and price is clearly visible in this weekly form, but is subject to change. Notice that Bitcoin is above the 50-day moving average (blue line) and the 200-day moving average (red line).

This is the negative divergence of the Relative Force Index and the convergence/divergence index of the moving average. Not as clear or dramatic as the Bitcoin, RSI and MACD charts show a decline in price increases here.

Once again, cryptocurrencies continue to trade above their 50 and 200-day moving averages, making it difficult to see a change in trend. The upward behavior remains the same.

The sellers left the buyers slightly above 4,750 this month. This is a new resistance level traders are looking for. The last time buyers showed their strength was in March/June/July around 1750.

With the September low of 1750 so far, this is a key support area. Watch for negative deviations from the RSI and MACD prices. Moreover, Ethereum is mostly in an uptrend, well above its 50 and 200 day moving averages.

This is not investment advice. For educational purposes only. Be sure to consult your registered investment advisor before making any decisions.