Key Findings:
- Bitcoin (BTC) and Ethereum (ETH) ended two-day mini winning streaks in a bearish session on Tuesday.
- Bearish crypto sentiment weighed as investors reacted to another set of positive US economic indicators.
- Technical indicators remain bearish as Fed monetary policy and economic uncertainty leave BTC and ETH in tight price ranges.
Bitcoin (BTC) is down 1.13% on Tuesday. BTC partially reversed a 1.49% gain from Monday to end the day at $19,334. Notably, BTC stayed below $20,000 for the 11th consecutive session while avoiding a return below $19,000 for a third session.
A bullish start to the day pushed BTC to a morning high of $19,709. BTC missed the First Major Resistance Level (R1) at $19,770 and slipped to a late low of $19,100. BTC fell through the First Major Support Level (S1) at $19,252 before partially recovering to end the day at $19,334.
Ethereum (ETH) fell 1.58% on Tuesday. ETH partially reversed Monday’s 1.99% gain to end the day at $1,311.
ETH tracked the broader market and surged to an early morning high of $1,342. ETH missed the first major resistance level (R1) at $1,349 and slipped to a late low of $1,287. ETH briefly fell through the First Major Support Level (S1) at $1,305 before ending the day at $1,311.
On Tuesday, the market reaction to US economic indicators sent BTC and ETH into negative territory. Fear overshadowed US corporate earnings, despite Goldman Sachs (GS), Johnson & Johnson (JNJ) and Lockheed Martin (LMT) releasing better-than-expected quarterly results.
This morning, bearish sentiment continued to test buyers’ appetites. The NASDAQ Mini gave up early gains, putting further pressure on BTC and ETH. The NASDAQ was up more than 150 points before going into reverse. At the time of writing, the NASDAQ Mini is up just 29.75 points, suggesting a choppy US session.
Bitcoin (BTC) price action
At the time of writing, BTC was down 0.79% to $19,181. A bearish start to the day took BTC from an early high of $19,361 to a low of $19,152.
BTCUSD 191022 daily chart
Technical indicators
BTC needs to move through the $19,381 pivot to target the First Major Resistance Level (R1) at $19,662 and Tuesday’s high of $19,709. A BTC move through Tuesday’s high of $19,709 would signal a bullish session. However, FOMC members’ chatter has to be crypto-friendly to support a breakout.
In the event of an extended rally, the Second Major Resistance Level (R2) at $19,990 and $20,000 would likely come into play. The third major resistance level (R3) is located at $20,599.
If the pivot is not breached, the first major support level (S1) would remain in play at $19,053. Barring a prolonged selloff, BTC should avoid going below $18,500. The second major support level (S2) at $18,772 should limit the downside.
The third major support level (S3) sits at $18,163.
BTCUSD 191022 hourly chart
Looking at the EMAs and the 4-hour candlestick chart (below), this was a bearish signal. Bitcoin was below the 50-day EMA this morning, currently at $19,336.
The 50-day EMA retreated from the 100-day EMA, with the 100-day EMA declining from the 200-day EMA, providing bearish signals.
BTC needs to move through the 50-day EMA and 100-day EMA ($19,392) to target the 200-day EMA ($19,610) and R1 ($19,662). However, if it fails to break the 50-day EMA ($19,336), the S1 ($19,053) would remain in sight.
BTCUSD 191022 4 hour chart
Ethereum (ETH) price action.
At the time of writing, ETH was down 1.01% to $1,298. On a mixed morning, ETH surged to an early high of $1,314 before falling to a low of $1,292.
ETHUSD 191022 daily chart
Technical indicators
ETH needs to move through the $1,313 pivot to target the First Major Resistance Level (R1) at $1,340 and Tuesday’s high of $1,342. However, risk appetite needs to improve to support a breakout from the morning high of $1,314.
In the event of an extended rally, the Second Major Resistance Level (R2) at $1,368 and $1,400 would likely come into play. The third major resistance level (R3) is located at $1,423.
If the pivot is not breached, the First Major Support Level (S1) would remain in play at $1,285. However, barring another crypto sell-off, ETH should avoid below $1,270 and the second major level of support (S2) at $1,258.
The third major support level (S3) sits at $1,203.
ETHUSD 191022 hourly chart
Looking at the EMAs and the 4-hour candlestick chart (below), this was a bearish signal. Ethereum is below the 50-day EMA, currently at $1,307. The 50-day EMA retreated from the 100-day EMA, with the 100-day EMA declining from the 200-day EMA, providing bearish signals.
A move through the 50-day EMA ($1,307) and 100-day EMA (1,317) would give the bulls a run to R1 ($1,340). However, if it fails to break the 50-day EMA ($1,307), S1 ($1,285) would remain in play.
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