- The prices of Bitcoin (BTC) and Ethereum (ETH) ended the just-ended week on a positive note.
- As a result, the last 24 hours were tough for traders who leaned toward bearish sentiment and bet on their conviction.
- According to derivatives information portal Coinglass, over $62 million was liquidated on May 25. Out of this ETH positions were valued at $8.58 million. BTC contracts wiped out, on the other hand, were worth $7.56 million.
BTC and ETH liquidations summed up to $16.14 million in the last 24 hours.
Bitcoin and Ethereum Price Analysis: A Week of Volatility
At press time, BTC’s price was $69,085 while ETH changed hands at $3,803. A few weeks back, the values of these cryptocurrencies were not near this point. But will Bitcoin and Ethereum continue to produce green candlesticks? This price analysis gives some insights.
Technical Indicators and Market Sentiment
From a technical perspective, the BTC/USD chart showed that the Moving Average Convergence Divergence (MACD) was at a critical point. Although the reading was positive, the 12 EMA (blue) and 26 EMA (orange) were around the same spot. This position indicates that bulls and bears were struggling for dominance. If the shorter EMA rises above the longer one, Bitcoin might rise to $71,054 where the 1.618 golden ratio was positioned. However, BTC might drop to other Fibonacci levels if the 26 EMA crosses above the 12 EMA. If this is the case, the price of the coin might slip to $65,986 (the 0.618 Fib level).
Ethereum’s Momentum and Potential Price Movements
ETH’s momentum decreased, suggesting that the price might fall to $3,437. The shorter and longer EMA were almost at the same spot, indicating possible BTC consolidation. For those unfamiliar, liquidation occurs when a trader is unable to meet the requirements to keep a position open, leading an exchange to forcefully close the contract. This could be due to insufficient margin balance or a wrong prediction accompanied by high leverage of volatility.
Conclusion
In conclusion, the recent price movements of Bitcoin and Ethereum have created a challenging environment for traders. The technical indicators suggest potential consolidation for BTC and a possible decline for ETH. As always, traders should remain cautious and stay informed about market developments to navigate the volatile crypto landscape effectively.
