Bitcoin and Ethereum analysis – BTC and ETH price on Monday, May 9, 2022

The trend had been noticeable for a few weeks. And what was feared is about to become a reality as of this writing. Indeed, Bitcoin and Ethereum have come in turn to endanger their tidys respective. And given inflationary risks that don’t seem to be showing any real signs of slowing down, the slump around cryptocurrencies could worsen.

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In view of monetary tightening by central banks and an economic slowdown, the latest technical analyzes of BTC and ETH are hardly encouraging. And the threat is seriously becoming clearer, whatever the unit of time observed. With the consequence, a bear market for the top two cryptocurrencies about to materialize for good. All this just to start a possible phase of panic.

Bitcoin – A new low for the year

Following a weekend under high tension, Bitcoin achieves a historic first by chaining a sixth consecutive week of decline. As such, it beats the last such streak that took place in 2014. tidy or horizontal channel (orange rectangle).

And as if it were necessary to throw oil on the fire, the $35,000 support ($34,000-35,000 on the chart) is more in danger than ever. With, in the event of a break of this level, the validation of two essential pillars of a bear market. That is, in the first place, Bitcoin prices moving away from the head-shoulder (ETE) neck line located around $41,000. Considering the strong predictive nature of this bearish chart pattern which could weigh all its weight against buying tendencies.

And then, Bitcoin’s descending line triggered from its November 2021 ATH. The latter reinforced, following the realization of two lower and lower high and low points. With, in this case, the expectation of confirmation of the second low point corresponding to the exit of the range in which the BTC has been evolving since the end of January.

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All this with, in parallel, of technical indicators in weekly units which turned unfavorably. With more particularly the MACD which, in addition to being below the zero line, is once again crossing its signal downwards. And henceforth, all the technical signals which drive bitcoin prices back to previous lows of the year. Hard to believe, considering they were so close to breaking the $46,000 resistance in early April.

Ethereum – Back on the $2300 support

Still lagging behind Bitcoin, Ethereum has had a bad week. Because even if its prices still remain within its tidy (orange rectangle), the $2800 support he tried to build on didn’t hold. And the bearish candle recorded over the past week is cause for concern for cryptocurrency investors. Because this places ETH very close to the bottom of its range, but also to the support of $2300.

Weekly Ethereum Price Analysis - May 09, 2022

To make matters worse, the latest technical signals lean towards a market scenario that was still impossible to envisage more than a month ago. Like what, ETH’s latest failure below the $3400 resistance was instrumental in triggering the current bearish move. With a descending line initiated since its last ATH in November 2021 which could well assert itself, in the event of an exit from its range from below.

Moreover, in weekly units, technical indicators unfortunately seem determined to confirm this trend. This follows their respective failures below their waterlines. With on the one hand, a bearish crossover of the MACD which begins to take shape. And on the other, the RSI is sliding towards the oversold zone. Thus, everything is in place for Ethereum to experience the same fate as Bitcoin in the days/weeks to come.

BTC and ETH – Downside Pressure Remains Strong

If no major news comes to neutralize the major uncertainties on the financial markets, all risky asset classes should continue to remain in mode risk-off. And since Bitcoin and Ethereum are currently following equity indices, their trends could quickly turn downward. This would momentarily trigger a panic phase in case of rupture of their tidy respectively from below.

Coinshares Crypto Capital Outflow - May 09, 2022

Downside pressure remains strong. With the possible consequence of a return to the low points of last year. That is to say a BTC and an ETH which would be respectively at $30,000 and $1800. And since the market environment is completely different compared to the previous decade, these levels may not necessarily represent definitive points of fall.

That is why, the scenario of bearrun of these two cryptocurrencies is no longer to be excluded, as was the case in 2018. And all the more so if we consider the dynamics of capital flows on cryptocurrencies in recent weeks (or even in the year 2022). Because that does not bode well for the rest of the events.


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