Under the title "Where Are Bitcoin Prices Heading?", Bloomberg East published an article featuring charts, noting that Bitcoin has gone through a tough time in the past two months after reaching a record level. The price of the largest cryptocurrency has fluctuated between $30,000 and $40,000 for several weeks, following its all-time high of nearly $65,000. This indicates that chart watchers are scanning the data to look for signals that clarify the upcoming direction.
The second largest digital currency, Ethereum, has been traded in the $2,100 range after surpassing nearly $4,400 in mid-May. There is no support for Bitcoin.
In recent comments, Rich Ross, a technical strategist at Evercore ISI, stated that Bitcoin's price movement reveals a “dangerous chart filled with fury and raised voices, and it is unsupported.” Initially, the currency faced resistance at $36,000 and then found price support at $33,000 and $30,000 before dropping to $22,000 or lower. Ross clarified that Ethereum's price was "relatively more positive, reaching above $2,400."
Here are some charts that investors can consult in an attempt to discern the upcoming direction for Bitcoin and Ethereum:
**Stock Matchup**
The percentage gains of Bitcoin since the beginning of the year have doubled those of the S&P 500 index for a period, but this changed after the cryptocurrency declined, while stocks continued to hit record numbers. They have been on the same track for a few weeks now.
**Upcoming Volatility?**
The Bollinger Bands indicator is wrapping around Bitcoin's price, warning of impending volatility. The bandwidth of the indicator, determined by calculating the percentage difference between the upper and lower bands, is at its lowest for the year to date, while the 14-day actual change average is also near its lowest for the year.
**Moving Away from Gold**
The 60-day correlation between Bitcoin prices and spot gold has turned negative, a phenomenon that has occurred only a few times since 2018. In fact, this could be seen as a positive as the decreased correlation increases the desire for the asset for diversification purposes during the asset allocation process. However, this also indicates that the title of "digital gold" that some have assigned to Bitcoin may no longer be appropriate.
**Average Price**
Ethereum's price has recently slightly surpassed the 200-day moving average, indicating this trend. This news is good, but the bad news relates to the 50-day average, where price resistance appears at $2,300, and it will not move up from there.
