Technical Update - Ethereum could soon again test 1K. Bitcoin is looking at 10K
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Bitcoin BTCUSD is trading in a more and more narrow falling channel, a wedge like formation. Failing to move above the 200 weekly SMA BTCUS could be testing the June lows at 17,567.
If broken Bitcoin is likely to drop to the 1.618 projection at 12,841 close to where Bitcoin took off back in Q3 2020 after breaking above 12,564.
However, Bitcoin could try to test the 10K mark. A psychological level.
Ethereum ETHUSD seems to be trading in a wide falling channel. A correction that took the Crypto currency to just above 2.000 could now be set for lower levels. Break of support at 1.420 is likely to fuel a sell-off down below 1.000. If taking out July lows at 879 a move to around 500-440 is not unlikely. 440 is around the level where Ethereum broke bullish in Q4 2021.
Latest Market Insights
Q4 Outlook 2022: Winter is coming
- Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)