Bitcoin and Ethereum Show Signs of Recovery Amid Market Uncertainty

As of October 2023, Bitcoin (BTC) has recovered 21% and Ethereum (ETH) 18% from their recent lows following the August 4 crash.

However, analysts warn that BTC could face further declines. Aurelie Barthere from Nansen notes that BTC's 50-day moving average is nearing a cross below the 200-day moving average, a pattern known as a 'Death Cross,' which typically signals a price downturn.

For BTC to avoid this bearish trend, it must maintain a price above $62,000. The all-time high resistance zone remains between $70,000 and $71,000. Barthere emphasizes the psychological impact on traders from previous sell-offs in March and July.

Similarly, ETH is showing a strong correlation with BTC and has already experienced a Death Cross on its daily chart. It needs to hold above $2,700, a significant resistance level tested in January and again this week.

The recent sell-off in risk assets is linked to the Bank of Japan's rapid interest rate cuts, impacting leveraged traders, particularly in the US. Analysts from Bitfinex highlight that the US election is the most significant narrative affecting crypto markets currently.

With increasing odds for Democrat nominee Harris and uncertainty surrounding the election, the market appears to be pricing in a positive outcome for Trump, which could influence recovery trends in the crypto space.

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