Bitcoin and Ethereum: Bitcoin pulls back below $40,000

• Yesterday afternoon, we saw a strong bearish impulse and a fall in the price of Bitcoin to the $39437 level.
• Ethereum’s price drop continued last night with a retreat to the $2299 level.

Bitcoin chart analysis

Yesterday afternoon, we saw a strong bearish impulse and a fall in the price of Bitcoin to the $39437 level. We have seen a breakout below Friday’s low and the formation of a new one. Today, Bitcoin tried to start a recovery, but we are stopping at the $40000 level and heading again towards the $39500 level. The pressure is now on the support zone, and a new breakout below and the formation of a new price low could easily occur.

Potential lower targets are $39250 and $39000 levels. We need a positive consolidation and a price retracement above the $40,000 level for a bullish option. If we could manage to move above, we would have a good position and continue with further recovery. Potential higher targets are $40500 and $41000 levels. The EMA200 moving average is in the zone around the $41500 level.

Ethereum chart analysis

Ethereum’s price drop continued last night with a retreat to the $2299 level. This morning, we saw a bullish attempt and recovery to the $2350. There, we encounter resistance, and the price begins a new retreat below the $2300 level. There is new pressure on the support zone, and the break below is the next expected price movement. Potential lower targets are $2275 and $2250 levels.

We need a positive consolidation and a return above the $2350 level for a bullish option. Then, the price would have to hold up there and initiate a new impulse for a potential recovery to the bullish side. The EMA200 moving average is high in the zone, around $2450, and we could get close to it. Potential higher targets are $2375 and $2400 levels.

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