In recent weeks, the crypto market has reportedly been consolidating or experiencing a small recovery during Asian trading hours, which is then liquidated with the start of the US trading session. Currently, the top two tokens, Bitcoin and Ethereum, surged beyond their respective resistance at $68,000 and $2,000. While the rally remains stuck within a consolidation, a deeper correction or a strong breakout may only prevent the bears from restricting the prices from securing the threshold at $70,000 for BTC & $2,500 for ETH.
Following a strong recovery from the lows below $60,000, the top crypto seems to have gone into a hibernating mode. The BTC price is maintaining a horizontal consolidation, trading within a pre-determined resistance and support at $71,321 and $65,522 for more than a week. At the same time, the volume has been consistently plunging, hinting towards a lowered participation of the traders. In such conditions, it would be interesting to watch how long the BTC price will sustain above $68,000.
The short-term price action indicates the price is stuck within a decisive symmetrical triangle and triggered a rebound from the support. Despite this rebound, the 50-day MA continues to act as an immediate resistance, while the MACD shows a drop in the selling pressure. Considering the chart patterns, it appears that the BTC price may remain consolidated below $68,000 and may hit an intraday low around $67,300. These upswings and pullbacks may continue until the price reaches the apex of the triangle, which may further initiate a strong price action.
Ethereum price has been failing to rise above the $2,150 resistance since its breakdown in the first few days of the month. Therefore, these levels have now become a local threshold to break, which may even attract a substantial buying volume. For now, the rise above $2000 appears to be short-lived, as the buying pressure has remained within an average range.
The ETH price is closely following the BTC price rally, as the second-largest token is also stuck within a decisive symmetrical triangle. The volatility is shrinking as the Bollinger bands have begun to squeeze in the short term. On the other hand, the stochastic RSI has entered the upper threshold, and the levels are heading for a bearish crossover that may push the prices lower. The chart patterns suggest the consolidation may continue, and the ETH price may close the day’s trade below $2000 but above the local support at $1914.
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