Last week, cryptocurrencies experienced a bearish trend. Although the downward momentum was limited to a narrow trading range, some of the gains from the previous week were given back. Looking at the performance of the cryptocurrency markets throughout February, it can be seen that they showed a horizontal performance following the rise in January.
While this horizontal outlook has caused a decrease in the upward momentum in cryptocurrencies, there have not been any sharp price movements that would disrupt the short-term positive trend. Last week, the predominant view that the Fed would continue to raise interest rates emerged as a factor that dampened risk appetite in global markets. While the cryptocurrency markets were negatively affected by this situation, we saw that transactions continued to be mostly seller-oriented.
As we enter a new month this week, let’s evaluate the important levels for Bitcoin and Ethereum.
Bitcoin (BTC)
Last week, Bitcoin exhibited a gradual decline, but on the last day of the week, it showed some buying momentum and ended the downward trend. Based on last week’s price movement, Bitcoin started the week in the negative zone below the pivot level of $23,726, despite the partial increase yesterday.
To continue its recovery, Bitcoin needs to close above the pivot level of $23,700, which is currently at $23,700. Then, the resistance levels that BTC may encounter this week can be monitored as $24,666, $25,250, and $26,186. These price levels can also serve as price targets for buyers this week.
On the downside, if the cryptocurrency cannot break above the pivot level of $23,700, it can find support at $22,790, which was the low price of last week. If the daily closing price falls below this level, BTC may trigger a decline towards $22,200 and then $21,200, which is an important support level as the weekly third support point with a 3-month exponential moving average value.
On the daily chart, the Stochastic RSI is just above the oversold zone after last week’s sell-off. According to this indicator, it is crucial for BTC to maintain the first support level at $22,700. If buyers can keep the price above this level, they may increase their intensity and the upward movement of BTC may continue.
Moving above the pivot level of $23,700 this week would mean that BTC will move above its short-term EMA values, which could accelerate its momentum. In the first half of February, the price of BTC formed a similar pattern and made a rapid upward movement towards $25,000 with high volume purchases after finding support below the short-term EMA values. To make a similar move this time, BTC needs to stay above $23,000 and increase buying volume above $23,700, which could trigger a move towards the $26,000 level.
Ethereum (ETH)
Thank you for the update on Ethereum’s price movements. It seems that Ethereum has started the week slightly positive above the pivot level of $1,637 after yesterday’s purchases. The upward momentum of Ethereum slowed down in the second half of January, but since then, it has been moving within a channel with upward momentum. During this process, the line reaching from $1,680 to an average of $1,720 has formed a resistance line. On the lower side, $1,500 has worked as a demand zone.
Currently, $1,570 is the first support level for this week, which was also a significant area of response in the last week of January. If Ethereum stays above $1,640 this week, it could rise to $1,690-$1,725 and up to $1,786, which corresponds to the upper band of the channel. On the lower side, if $1,640 is not surpassed, ETH could move towards $1,565 and then drop to the range of $1,470-$1,530 after breaking this zone.
In summary, the reactions that Ethereum receives around the $1,640 zone could determine the direction of the cryptocurrency for this week.
