BTC/USD and ETH/USD daily price analysis  


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09/07/2019 4:28 pm  

John Todorov, senior trader at, said that Bitcoin reversed direction from $13,973.50 and plunged to a low of $10,530.70. That is a 24.63% fall within a day. The reason for such a sharp fall is that a vertical rally does not form any support levels en route. Hence, when the price starts falling, buyers do not step in until they spot a level that can act as a support. In this instance, buyers came in close to the 50% retracement of the latest leg of the rally. The 20-day EMA is located just below this level.

In a strong uptrend, the corrections usually last anywhere between one to three days, said Todorov from Currently, the bulls are attempting to resume the uptrend. They might face some resistance at $12,000 and above it at $13,000 but the real test will be at $13,973.50. If the BTC/USD pair breaks out of this resistance, the momentum will continue, thinks Todorov.

On the other hand, if the bears defend the overhead resistance, the pair might enter into a consolidation for a few days. On the downside, below $10,530.70, the next support is at $9,977.33, which is 61.8% Fibonacci retracement of the latest leg of the rally. If this support cracks, the digital currency will weaken and can drop to the 50-day SMA, according to’s senior trader opinion.

 Ether (ETH) had closed above $320.840 and had completed a rounding bottom pattern, John Todorov from had suggested traders to wait before buying. He wanted to recommend a trade on a successful retest of the breakout level.

However, the fall dragged the price back towards the 20-day EMA, which held. Currently, the bulls are trying to propel the ETH/USD pair back above $320.840. If successful, it will be a positive sign. Both the moving averages are sloping up and the RSI is in the positive zone, which shows that bulls are in command. Therefore, traders can buy 50% of the desired allocation on a breakout and close above $320.840. The stop loss for this trade can be kept at $278, advises Todorov from

However, if the bulls fail to scale the overhead resistance, the bears will try to sink the price below the 20-day EMA. The next support on the downside is at the 50-day SMA and below it $224.086, thinks Todorov.

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