Investors have been on their toes scanning the charts and trying to predict where bitcoin, the largest cryptocurrency, is heading next after hitting an all-time high near the $65,000 mark.
Following its record high, bitcoin has had it rough floating in between the $30,000 to $40,000 range for weeks. Trading for ethereum, the second biggest crypto, has been in the $2,100 area after reaching $4,400 in mid-May.
Rich Ross, the technical strategist at Evercore ISI who noted bitcoin’s first resistance at $36,000 and downside to $22,000 or lower, said that ether is showing “a more constructive aspect especially over $2,400.”
Where it’s headed
By continually watching the charts, investors can try to determine where bitcoin and ethereum are headed next.
Bitcoin’s price action, according to Ross, indicates “a menacing chart full of sound and fury, backed by nothing.”
The graphs can show the essential movements of the cryptocurrencies like daily moving average and warnings of pickup in volatility.
Meanwhile, bitcoin’s year-to-date percentage rally was, for a certain period, bigger than that of the S&P 500. But as the cryptocurrency slowed down and equities continued to register new highs, that has changed. Analysts said the momentum has been about the same since the last few weeks.
Cryptocurrencies are in a summer slump as they try to weave through a two-month correction phase after a series of negative narratives.
Trading volumes at the biggest exchanges, including Coinbase, Binance, Kraken, and Bitstamp, were down more than 40% last month, data from crypto market data provider CryptoCompare show, citing lower prices and weaker volatility as the reason for the retreat.
The price of bitcoin reached a monthly low of $28,908 last month, CryptoCompare said, and wrapped up the month by 6%. A daily volume peak of $138.2 billion on June 22 fell 42.3% from the intra-month high in May, analysts said.
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