Nansen Analyst: Technical indicators suggest that Bitcoin and Ethereum may face further declines in the short term
According to CryptoSlate, as of press time, BTC and ETH have rebounded 21% and 18% respectively from their lows after the crash on August 4. However, Aurelie Barthere, Chief Research Analyst at Nansen, suggests that the worst may not be over yet. She explained: "BTC (and ETH) have touched local bottoms but the daily trend still appears negative: The 50-day moving average is about to fall below the 200-day moving average."
Barthere added that this creates a "death cross," a technical pattern typically seen before price drops. To avoid bearish signals on its chart, BTC needs to maintain a price level above $62,000. However, the historical high between $70k and $71k remains a strong resistance level.
Barthere further noted: "Psychologically speaking, some traders are hurt by the sell-offs in March and July which could be an extremely difficult threshold to overcome." Meanwhile, ETH has shown strong correlation with BTC especially during sell-off periods. She pointed out that ETH has already displayed a death cross on its daily chart and needs to stay above $2,700 - an important resistance tested in January and this week.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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