What will happen to Bitcoin (BTC) and Ethereum (ETH) this weekend?

韭菜救星7 · 2023-07-22T02:57:19.000Z

The weekend has arrived, a period that typically sees sharp declines. So what will change this time? Bitcoin price is unable to break above the $30,400 area, so the outlook does not look promising. However, investors need to be prepared for possible price fluctuations. Bitcoin (BTC) Chart Analysis Bitcoin remains stuck in a tight range, continuing to test investors’ patience. While we're used to seeing big moves during boring times, there's no need to feel depressed. Glassnode’s latest weekly report states that Bitcoin’s consolidation has narrowed the Bollinger Bands, with the gap between the two being just 4.2%. Based on various on-chain metrics, the authors conclude that investors are reluctant to sell, a situation similar to market fluctuations such as 2016 and 2019-20.

The weekend is here, and this period is usually characterized by significant declines. So what will happen this time? Bitcoin price cannot break through the $30,400 area, so the outlook does not look optimistic. However, investors need to be prepared for possible price fluctuations.
Bitcoin (BTC) chart analysis
Bitcoin remains stuck in a narrow range, continuing to test investor patience. While we are used to seeing major moves during boring periods, there is no need to get frustrated. Glassnode’s latest weekly report states that Bitcoin’s consolidation has narrowed the Bollinger Bands, with the gap between the two being just 4.2%. Based on various on-chain indicators, the author concludes that investors are reluctant to sell, a situation similar to market swings such as 2016 and 2019-20.
Despite the uncertainty in the short-term outlook for Bitcoin, the long-term trend remains upward. Charles Edwards, founder of Capriole Investments, said that allowing BlackRock to apply for an exchange-traded fund could encourage institutions to include Bitcoin on their balance sheets.
Bitcoin has been trading below the 20-day exponential moving average at around $30,400 since July 17, which is a negative sign. This shows that there is no strong buying interest at the moment. On July 20, the bulls pushed the price above the 20-day EMA, but the candlestick pattern shows selling pressure at higher levels. It will be difficult for the bears to sink the price below $29,500 in the next few hours.
In a downtrend, the price could drop to $28,869 (50-day SMA) or even to $27,500. Conversely, if the price rises sharply and breaks out of the 20-day EMA, we will see the pair rise to $31,000 and $32,400.
The upcoming Federal Reserve meeting next week and the presence of other unfavorable factors suggest that the bearish scenario is more likely at the moment.
Ethereum (ETH) chart analysis
The Ethereum (ETH) chart shows the price trend of the cryptocurrency. Based on the data in the chart, we can observe that the price of Ethereum has experienced both up and down fluctuations over the past period of time.
As Bitcoin broke through the $2,000 price point, Ethereum once again saw a drop. While many altcoins have rebounded more than 200% from their bottom, it is disappointing that Ethereum’s price has suffered somewhat despite the rising collateralization ratio and the decreasing supply on exchanges, which is mainly attributed to negative inflation. However, for long-term investors, it is more important to focus on future price movements.
ETH is trading close to the 20-day EMA ($1,896), which shows a balance between the bulls and bears. An important support to watch out for on the downside is the 50-day SMA ($1,854) area. Above this level, prices of $1,800 and $1,700 are likely to be seen. The final bottom in the short term is expected to be around $1,626.
However, if the price rises from the current levels or the 50-day SMA and breaks out of $2,000, a move to $2,141 and $2,200 is likely.
At the end of this week, there may be some negative events that could cause the price of BTC and ETH to fall and hit the initial support level. If the sell-off is larger, it may cause the price to fall further and test lower support levels. For those who invest in altcoins, it seems wise to prepare for the possible price breakout of BTC and ETH in the next 48 hours.