Both Ethereum and Bitcoin have seen some nice price rebounds today, with BTC up by 5% and ETH by 4%. Both cryptocurrencies saw a brief setback after Bitcoin had plummeted from a high above $9,000 to drop beneath the $8,000 level.
Etherdamus, formerly known as ScienceGuy9489, is back with some of his latest analysis in which he states Bitcoin could drop to $7k if BTC falls beneath $7,570, and Ethereum could drop toward $200 if ETH drops beneath $234.
200 EMA on ETH 4 hour chart is $234, for Bitcoin its $7,570. Failure to hold these levels will bring us to the 50 EMA on the daily charts which are at $220 and $7,000 giving us buying good opportunities. Not worried about these pull backs, its to be expected after a big rally
— Formerly ScienceGuy9489 (@Etherdamus) June 6, 2019
The analyst went on to state that he is not worried about the recent pullbacks, and expects the lower support areas to provide great buying opportunities.
Breaking down his tweet, Etherdamus believes there is some strong support for Bitcoin at the $7,570 level and Ethereum at the $234 – provided by the 200 EMA on the 4HR charts. If the price breaks beneath these levels, Etherdamus expects support beneath for Bitcoin at $7,000 and at $220 for Ethereum – provided by the 50 Day EMA. He believes these levels of support will provide great buying opportunities.
However, although Etherdamus has been very accurate in the past, we may never see Bitcoin breaking beneath the $7,507 level and Ethereum beneath $234 anytime soon, as both markets have rebounded from major support.
Beginning with Ethereum, the cryptocurrency met strong resistance at the $275 area, before dropping in June 2019 and finding support at the $235 level – exactly where Etherdamus predicted Ethereum support would be located. The support here is also further bolstered by the short-term .382 Fibonacci Retracement.
Ethereum has since rebounded from this level, and recently broke above $250. The next level of resistance lies at $260 and $270. Above $278, resistance lies at $298, $300, $315, and $334.
Moving on to Bitcoin, we can see that the cryptocurrency recently found support at the $7,570 level – exactly where Etherdamus had stated this strong support was located. This support is further bolstered by the short-term .382 Fibonacci Retracement level (drawn in green), priced at $7,419.
We can see that the market has now bounced from the highlighted area of support and recently penetrated above the $8,000 level. The next level of resistance above is expected at $8,265, which provided strong resistance for the market during May 2019. Above $8,265, further higher resistance lies at $8,400, $8,600, $8,888, and $9,000.
Etherdamus is correct in stating that if Bitcoin and Ethereum drop beneath his highlighted support we could head further lower toward $7,000 for BTC and $200 for ETH. However, it seems that today, Bitcoin has managed to break back above $8,000 and looks promising to travel further higher, which would mean that Bitcoin may not head toward $7,000 any time soon.
In any perspective, if Bitcoin does break beneath the support at $7,570 and drop toward $7,000, it will most certainly provide a perfect buying opportunity within this recently established bull market.