Top headlines in the crypto market this week:
- Bitcoin price sliced above $40,000 but has failed to sustain momentum, therefore this level acts as resistance.
- Amazon denied rumors of the firm’s plans of accepting Bitcoin in the future but crypto markets continue to rally.
- Robinhood’s CEO is reportedly under investigation, while the firm went public this week.
- US Congress proposed stricter crypto taxing regulations, aiming to raise a total of $28 billion.
- Tesla continues to hold Bitcoin despite an impairment of $23 million recorded in Q2.
- Binance will target licensing worldwide and wherever available, aiming to become a regulated financial institution.
Bitcoin price records monthly high but falls short at $40,000
Bitcoin price reached above $40,000 for the first time since June 16, but this level continues to act as stiff resistance for BTC.
In addition, the 100-day Simple Moving Average (SMA) on the daily chart also acts as an obstacle for BTC’s rally. Bitcoin price could retest major support levels before reaching higher highs.
The 27.2% Fibonacci extension level currently acts as meaningful support for Bitcoin price at $36,482, and the next line of defense is at $34,689, the 50-day SMA.
Bitcoin would need to overcome the 100-day SMA resistance level at $39,608 for bigger aspirations on the upside. BTC could target the 50% Fib extension level at $42,961 next if it clears the level mentioned above.
Although Bitcoin price appears to be facing some challenges ahead, PlanB’s stock-to-flow model still suggests that the leading cryptocurrency is in line with the model.
PlanB stated that the bull market is far from over, and that $64,000 was not the top.
Ethereum price buoyed by institutional exposure to ETH
Ethereum price has rallied over 47% since its swing low on July 20, recording a new monthly high. The ETH market has grown three times faster than the BTC market in the first half of 2021, as institutions gained exposure to the top altcoin.
While Ethereum price has been able to make a great recovery, ETH could be starting a period of retracement, as the Momentum Reversal Indicator (MRI) flashed an MRI top signal, suggesting a correction.
The 100-day SMA has been acting as resistance for Ethereum price, as well as the 78.6% Fibonacci extension level at $2,431.
Moving forward, Ethereum price may retest the 50-day SMA and the 200-day SMA level, coinciding with the diagonal support level at $2,157. This level should hold as significant support for ETH unless additional selling pressure is introduced.
Cardano price rally restricted by stiff obstacles ahead
Cardano price has printed a descending triangle pattern on the daily chart since May 18. Although ADA was able to break out of the bearish chart pattern, it may soon retest the hypotenuse of the triangle.
ADA upside potential was restricted by the 50-day SMA, and currently the 200-day SMA acts as meaningful support for Cardano price. Only further selling pressure would push ADA below the diagonal support trend line at $1.21.
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