Both Bitcoin (BTC) and Ethereum (ETH) are experiencing short-term bearish trends as of September 4, 2024. Trading within descending channels, both assets are facing downward pressure with limited opportunities for a bullish correction. This combined analysis highlights the price movements, key technical indicators, and potential scenarios for BTC and ETH as they navigate volatile market conditions.
Key Points
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Bitcoin (BTC) Price Action: BTC/USD is trading at $56,833, maintaining a downward trajectory within a descending channel. Moving averages indicate ongoing seller pressure. In the short term, a bullish correction is anticipated, with a test of the $58,805 resistance level before a likely downward rebound. The overall bearish target remains below $51,945.
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Ethereum (ETH) Price Action: ETH/USD is trading at $2,407, also within a descending channel, signaling a bearish trend. Prices have broken through key signal lines, further reinforcing the downward pressure. A potential bullish correction could lead to a test of the $2,495 resistance level, but a continuation of the decline is expected, targeting a level below $2,085.
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Technical Indicators for Bitcoin: BTC's relative strength index (RSI) indicates resistance near the upper boundary of the descending channel, supporting a bearish continuation. A break below the $54,805 support level would confirm further declines, while a breakout above $61,205 would signal a potential reversal with a target of $65,605.
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Technical Indicators for Ethereum: ETH’s RSI also points to a bearish trend, with the upper channel resistance acting as a key level to watch. A breakout above $2,705 would negate the current downtrend, opening the possibility of a rise toward $3,205. However, a price consolidation below $2,235 would confirm the continuation of the decline.
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Bearish vs. Bullish Scenarios for Both Assets:
- For Bitcoin, a breakout above $61,205 would indicate a shift toward bullish momentum, targeting $65,605. A breakdown below $54,805, however, would confirm further losses.
- For Ethereum, a bullish breakout above $2,705 would signal a potential rally to $3,205, while a fall below $2,235 would reinforce the likelihood of continued bearish movement.
Personal Opinion Both Bitcoin and Ethereum are currently navigating through bearish trends, with limited signs of a sustained recovery. While brief bullish corrections may occur, the overall market sentiment for both assets leans towards further declines in the short term. For Bitcoin, the $58,805 resistance level will be crucial in determining if it can hold any upward momentum before resuming its downward trajectory. Similarly, Ethereum's $2,495 resistance will be a critical level to watch before any potential downward continuation towards $2,085. In my opinion, while there are opportunities for traders during these corrections, both assets are likely to face further downward pressure unless key resistance levels are broken.
Sources: https://forex24.pro/cryptocurrency/ethereum-forecast-and-analysis-for-september-5-2024/
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