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January 10, 2022

Bitcoin and Ethereum Analysis 2/10

Bitcoin price is trading sideways around a key resistance level, implying that a significant change is imminent. While XRP slacks, Ethereum is already exhibiting signs of a comeback rally. Some altcoins have already risen, demonstrating their strength and hope.

For nearly a week, the price of bitcoin has remained stalled around $42,000. After dipping into the liquidity pool for the third time below $41,492, the major crypto could create a bottom. This swing low could set off an uptrend that extends above the previously indicated support floor.

After a 10% gain, the subsequent rally tries to retest the $45,678 resistance level. The rally might extend to $48,027 or the 200-day Simple Moving Average (SMA) around that level in some situations.

If the aforementioned optimistic scenario comes to fruition, BTC might gain 15% in total.

While the price of Bitcoin appears to be rising, a breach of the liquidity pool’s lower limit at $39,057 will result in a lower bottom, undermining the bullish argument. This development could push BTC below $30,000 in the near future.

The price of Ethereum is following Bitcoin’s lead and is currently hovering around $3,153. ETH has rebounded above it, but there’s a risk it’ll cut through it to generate another swing down, completing the bottoming process.

This development in ETH is projected to set off an upswing to $3,629, or a 15% increase, closely tracking the rise in BTC. In other situations, the rally may be able to break through immediate resistance and make a push for the $3,852 barrier and the liquidity that lies above it. If the optimistic scenario pans out, ETH might earn 22 percent in total.

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Regardless of the optimism, Ethereum must break beyond the $3,431 200-day Simple Moving Average (SMA) to complete its 22 percent increase. If the rally fails, the price might fall by 6% to the $2,963 support level.

A closing below this barrier on a six-hour candlestick will result in a lower low, undermining the bullish argument. This swing low could signal the start of a downtrend that takes ETH to $2,764.