Bitcoin and Ethereum Forecast | BTC and ETH Struggle Below Key Resistance Levels

What to Know

• Bitcoin struggles near the 200-day EMA at $108,000, signaling potential weakness if $100,000 fails to hold.
• Ethereum follows Bitcoin’s lead, hovering near $3,500 with $3,000 acting as strong support.
• A “death cross” may form on Bitcoin charts, suggesting possible downside pressure.
• Both BTC and ETH need a confirmed breakout above resistance to restore bullish momentum.
• Institutional activity continues to influence long-term crypto market behavior.

We have recently seen a lot of noise in the crypto markets, and as the crypto markets continue to show quite a bit of malaise, the noise online has gotten a bit out of control. After all, it seems as if various forces are trying to throw narratives around and suggest that this is going to be a generational buying opportunity again. Some are more apt to press the idea that the market really hasn’t fallen that far, and it’s done worse than this in the past, while still others start to talk about there being massive market manipulation.

When I read all of this online, I understand that most people trading cryptocurrency have no idea what it actually is in the big scheme of things. What I mean by this is that cryptocurrency is extraordinarily far out on the risk spectrum. Despite the fact that it is considered to be a risky asset, there is a certain amount of institutional involvement that has drastically changed the way these markets are going to behave. Simply put, Bitcoin is now going to behave more like an index, and to a lesser extent, so will Ethereum.

Technical Analysis – Bitcoin

Bitcoin (BTC) initially tried to rally during the trading session on Tuesday but found itself stuck and then turned around at the 200-day EMA. The 200-day EMA just so happens to coincide with the $108,000 level, an area that’s been important more than once. The 50-day EMA is starting to drop from lower levels, and continuing to see an attempt to break down below the 200-day EMA is kicking off what is called the death cross. Below, we have the $100,000 level offering significant support, and if the market were to break significantly below there on a daily basis, I suspect that will do quite a bit of psychological damage to this market.

After that, you could be looking at $93,000, followed by $85,000. Rallies at this point in time are not to be trusted. It is not until we break above the $111,000 level that I suspect you will see momentum carry Bitcoin higher.

Technical Analysis – Ethereum

Ethereum (ETH), of course, has been fairly bearish as of late, and it finds itself fighting the 200-day EMA. Ethereum did at least try to continue to go higher early in the session on Tuesday, but quite frankly, I think it’s a little obvious at this point that Ethereum is simply going to follow the lead of Bitcoin, which is typically the case anyway.

The market is currently hovering around the $3,500 level and sees the $3,000 level as a significant floor. In the case of Ethereum, it’s difficult to get overly bullish until we break above the $4,000 level or at the very least, the 50-day EMA. Longer term, it is probably an asset you would like to own, but I suspect you can do so at a lower price.

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