FxWirePro- The Bull and bear scenario for the top cryptocurrency (Bitcoin and ETH)

Bitcoin (BTCUSD)-

BTCUSD  has once again declined after a pullback near $50000 levels. The pair formed lower high and struggled to close above $50000.  The pair is hovering near 200-day MA and is currently trading around $47203.

Bear case-

Levels to watch- $46980 (200- day MA). Any daily close below will drag the Bitcoin to the next level of $41967 (Dec 4th low)/$40000.  Major demand zones are $39759, $37600. A breach below $37000 will pull the BTC to 2021 low $28600.

Bull case-

Primary - Barrier- $50000 (200-day EMA). Any breach above that level will take the pair to $50550/$50800/$52000.

Secondary barrier- $54550. A jump above that barrier targets $60000/$69000 (all-time high).

ADX- Bearish. The trend strength indicator holding above 35 levels points to weakness.

The short-term trend is showing weakness. Better to avoid going long.

It is good to sell on rallies around $49500-600 with SL around $52000 for TP of $42000.

Ethereum (ETHUSD)-

ETHUSD  dropped below $4000 after a minor pullback to $4147. It is currently trading around $3881.97.

Bear case-

Levels to watch- $3800. Any close below will drag the ETH to near-term support of $3640/$3470 (Dec 4th low)/$3217 (200- day MA).  Major demand zones are $3200/$3000. Breach below $3000 targets $2650 (Sep 2021 low).

Bull case-

Primary - Barrier- $4150. The jump above will mark the beginning of an intraday bullish trend. Surge past will push the prices higher till $4500/$4650/$4784.

Secondary barrier- $4870. Breach that barrier targets $5000.

It is good to sell on rallies around $4000 with SL around $4250 for TP of $3500.