Briefly –
- Bitcoin depicts a strong bounce from the 79% FIB retracement at $40,727, indicating a temporary relief.
- Ethereum sees its price creeping back beyond the psychological level at $3,000, following Bitcoin’s footsteps.
- The leading cryptocurrencies have to clear many obstacles to confirm stable uptrends.
Bitcoin endured two massive blows – 7 September and the next one from 19 September to 21 September. The two fatal downswings had the flagship currency hitting a crucial support floor. Though the recent sessions had an impulse rise, producing green candlesticks across the market, uncertainty still exists. No one knows if the optimism will last for long.
BTC Bounces Back
Bitcoin saw its price closing beyond the 79% FIB retracement zone at $40,727 on 21 September. With that, it formed a bullish engulfing candle the following day. The dominant asset extended its uptrends, gaining 9% so far.
If the coin sees continuous buying pressure, it will retest the 50% FIB retracement zone at $45,210. This point might trouble bulls because of the consolidation recorded at the 2nd week of September. Meanwhile, if Bitcoin succeeds in flipping $46,856, it will change the current narrative. If the asset creates a decisive close beyond $49,436, it will form a higher high and initiate another upsurge.
However, the leading crypto is yet to confirm its moves for a swing high. Furthermore, BTC formed lower highs on 7 September and 18 September, and this trend may continue as the asset moves forward.
With that, investors need to be alert as far as the asset’s next upswing is concerned. Meanwhile, if BTC fails to produce an upswing beyond $46,856, it might catalyze a retracement that might result in a lower low near $37,481, the 4 August swing point.
ETH Has to Conquer Two Vital Barriers
Ethereum price suffered when BTC dropped towards $40,000. That way, the alt plummeted under $3,000, its psychological point, forming a swing low around $2,650. However, ETH surged past this obstacle with a higher probability to surge higher.
For now, Ethereum needs to overpower the resistance level at $3,202 to retest the swing high at around $3,619. If buyers can activate their actions for a decisive close past $3,619, the altcoin will rise with a new upswing. That can see the ‘smart’ contract asset rising towards $4,180.
Though this optimism appears realistic, it depends on the presumption that BTC extends its uptrends or consolidates. If Bitcoin registers U-turns to knock Ethereum beneath $2,889, it will cancel the bullish outlook and catalyze a crash towards the demand area ranging between $2,442 and $2,605.
