Bitcoin, Ethereum Hit the Brakes Ahead of Key Resistance..."Thought it was a Bull Market, But It's Stalled Again"

▲ Bitcoin (BTC), cryptocurrency wallet/ChatGPT generated image

While Bitcoin (BTC) and Ethereum (ETH) have once again been pushed back from key resistance levels, shaking expectations for a bullish turn in the cryptocurrency market, an analysis suggests it's too early to conclude that the trend recovery scenario has ended based on this short-term correction alone.

Dan Gambardello, host of the crypto-focused YouTube channel Crypto Capital Venture, analyzed in a video released on May 15 (local time) that Bitcoin encountered resistance in the area where the 200-day moving average and the upper trendline overlap. He had previously suggested the vicinity of $83,400 to $83,500 as a key confirmation zone, explaining that this pullback is a technically predictable movement.

Gambardello noted that Bitcoin is testing short-term support around the 20-day moving average at $79,000, and if it falls further, the 50-day moving average at $75,000 could be the next defense line. For deeper correction zones, he suggested the trendline in the low $70,000s and around the Fibonacci 0.618 retracement level ($71,000 to $72,000), and around the Fibonacci 0.786 retracement level ($68,000). He pointed out that if this correction creates a higher low than the late March low, it would be difficult to view the bullish structure as completely invalidated.

Ethereum showed a weaker performance than Bitcoin. Gambardello diagnosed that Ethereum failed to hold the 20-day and 50-day moving averages as support on the daily chart and is testing the vicinity of the lower trendline of the symmetrical triangle. He suggested $2,100 to $2,000 as Ethereum's next major support zone, adding that if this zone is breached, there's a possibility of retesting the previous low around $1,900.

However, Gambardello emphasized that even if Ethereum breaks below the lower trendline, it should not be immediately concluded as a trend collapse. He explained that "fakeouts," where the price briefly breaks a trendline and then moves in the opposite direction, frequently occur in the cryptocurrency market. On Ethereum's weekly chart, he noted the lack of a quick recovery even after the 20-week moving average dropped below the 200-week moving average as a cause for concern.

Gambardello stated that while the failure of Bitcoin and Ethereum to break resistance is a frustrating development for investors, past major reversal markets also saw consolidation and sideways movement first. He explained that reversals take time, and the current market is a phase where bulls and bears continue their tug-of-war between the 20-day, 50-day, and 200-day moving averages, and key Fibonacci support levels.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*