Bitcoin and Ethereum – Weekly Technical Analysis – May 17th, 2021
It’s a bearish start to the week. Failure to move through the week’s pivot levels would deliver another week of heavy losses.
Bitcoin
Bitcoin, BTC to USD, slid by 20.06% in the week ending 16th May. Reversing a 2.96% gain from the previous week, Bitcoin ended the week at $46,597.0. A mixed start to the week saw Bitcoin rise to a Monday high intraweek high $59,589.8 before hitting reverse.
Falling short of the first major resistance level at $60,831, Bitcoin slid to a Sunday intraweek low $44,021.0.
The extended sell-off saw Bitcoin fall through the first major support level at $54,341 and the second major support level at $50,405.
Bitcoin also fell through the 23.6% FIB of $50,473 to end the week at $46,500 levels.
4 days in the red that included a 12.53% slump on Wednesday and a 6.17% slide on Saturday delivered the downside for the week.
For the week ahead
Bitcoin would need move through the $50,069 pivot and the 23.6% FIB of $50,473 to support a run the first major resistance level at $56,118.
Support from the broader market would be needed for Bitcoin to break out from $55,000 levels.
Barring an extended crypto rally, the first major resistance level would likely cap any upside.
In the event of an extended breakout, Bitcoin could test resistance at the April swing hi $64,829.0 before any pullback. The second major resistance level sits at $65,638.
Failure to move through the $50,069 pivot and the 23.6% FIB of $50,473 would bring the 38.2% FIB of $41,592 and the first major support level at $40,549 into play.
Barring another extended sell-off, Bitcoin should steer clear of sub-$40,000 support levels. The second major support level sits at $34,500.
At the time of writing, Bitcoin was down by 3.09% to $45,156.7. A mixed start to the day saw Bitcoin rise to an early Monday morning high $46,796.0 before falling to a low $44,956.1.
Bitcoin left the major support and resistance levels untested early on.
Ethereum
Ethereum fell by 8.73% in the week ending 16th May. Partially reversing a 33.07% surge from the previous week, Ethereum ended the week at $3,585.62. A bullish start to the week saw Ethereum rally to a Wednesday intraweek high and a new swing hi $4,384.43 before hitting reverse. Ethereum broke through the first major resistance level at $4,277 to come within range of $4,400 levels. The reversal, however, saw Ethereum slide to a Sunday intraweek low $3,343.57. While steering clear of the first major support level at $3,266, Ethereum tested support at the 23.6% FIB of $3,369 before ending the week at $3,500 levels. 4-days in the red that included an 8.45% slide on Wednesday and a 10.56% tumble on Saturday delivered the downside.
For the week ahead
Ethereum would need to move through the pivot at $3,834 to bring the first major resistance level at $4,136 into play.
Support from the broader market would be needed, however, for Ethereum to break back through to $4,000 levels.
Barring an extended crypto rally, the first major resistance level and last week’s swing hi $4,384.3 would likely cap any upside.
In the event of an extended breakout, Ethereum could test resistance at $5,000 before any pullback. The second major resistance level sits at $4,687.
Failure to move through the pivot at $3,834 would bring the 23.6% FIB of $3,369 and the first major support level at $3,283 into play.
Barring an extended sell-off in the week, Ethereum should steer clear of sub-$3,000 levels. The second major support sits at $2,980.
At the time of writing, Ethereum was down by 5.22% to $3,398.42. A bearish start to the week saw Ethereum slide from an early Monday morning high $3,590.00 to a low $3,398.42.
Ethereum left the major support and resistance levels untested at the start of the week.
