BTC and ETH Prices May Recover After Unexpected 24-Hour Correction
Bitcoin (BTC) and Ethereum (ETH) experienced a significant correction in their prices following an escalation of tensions between Iran and Israel. BTC dropped to as low as $60,600, while ETH crashed to $2,852. This led to liquidations worth $711 million within four hours. However, analysts believe that these dips are a normal occurrence in the crypto market.
Benjamin Cowen, an analyst, suggested that the correction might not be over, with BTC potentially hitting $50,000 if historical trends were to repeat. The 4-hour BTC/USD chart indicated a bearish momentum, with the Moving Average Convergence Divergence (MACD) showing negative values. The 12 EMA slipped below the 26 EMA, revealing that sellers had the upper hand despite the bounce. If this continues, BTC could drop below $64,000, targeting its underlying support of $63,567. However, a bounce above this level could push the price towards $67,722, contingent upon increased buying pressure. Nonetheless, weak momentum indicated by the RSI might make a rebound to $67,000 unlikely in the short term.
In the case of Ethereum, the RSI suggested overselling, but the altcoin lacked the necessary strength to establish a bullish momentum as the reading remained below 50. If buying pressure increases, ETH could rise to $3,275 in the short term. The Bollinger Bands (BB) also pointed towards oversold conditions and increased volatility, which could result in high price fluctuations. In a highly bullish scenario, ETH might jump to $3,712. Conversely, a lack of buying pressure could cause the cryptocurrency to oscillate between $3,080 and $3,275.
It is important to note that this article is for informational and educational purposes only and does not constitute financial advice. Readers are advised to exercise caution and make their own informed decisions before engaging in any financial transactions.