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Kim Cramer Larsson takes a technical look at Bitcoin and Ethereum

Kim Cramer Larsson takes a technical look at Bitcoin and Ethereum| FXMAG.COM
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Summary:  Bitcoin and Ethereum are testing key resistance levels after a strong comeback. But they could be caught being range bound before break out


Bitcoin BTCUSD is close to test resistance at around 25K. A break above could extend the uptrend to next resistance at around 28K but would have potential up to the upper range of the Consolidation area at around 32,384.
However, RSI is showing divergence i.e., the past couple of days bullish market is not supported by the Strength Indicator. An indication of a sustainable push higher would be if RSI breaks above its falling trendline.
If Bitcoin is being rejected and slides back support at around 21,475 could be tested.

kim cramer larsson takes a technical look at bitcoin and ethereum grafika numer 1kim cramer larsson takes a technical look at bitcoin and ethereum grafika numer 1

Source: Tradingview and Coinbase

Ethereum ETHUSD seems range bound between 1,460 and 1,700. RSI is showing divergence but has broken above the falling trendline which could be an indication ETH is set to move higher but the crypto seems to be struggling to leave the range.
If ETH succeeds next resistance at around 1,790 and around 2K close to the 1.618 projection of the November sell-off.
A break below 1,460 down trend would resume with support at 1,318.

Read next: RBNZ Preview: 50bp hike, but the peak is close| FXMAG.COM

 kim cramer larsson takes a technical look at bitcoin and ethereum grafika numer 2kim cramer larsson takes a technical look at bitcoin and ethereum grafika numer 2

Source: Tradingview and Coinbase

RSI divergence explained: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend

Source: Technical Update - Bitcoin and Ethereum testing key resistance. Could be range bound for a while | Saxo Group (home.saxo)


Kim Cramer Larsson

Kim Cramer Larsson

Kim Cramer Larsson started his career in 1996 as an equities trader focusing on the US and Asian markets with BG Bank, London. In 1997, Kim relocated to BG Bank, Copenhagen (BG Bank was acquired by Danske Bank in 2000) to the position of equities trader and portfolio manager. 

Kim began using technical analysis as a trading tool from 1997. In 2005, Kim was promoted to the position of technical analyst in the FX & Fixed Income Research department at Danske Bank. In his current role, Larsson focuses on technical analysis of equities, equity indexes, forex pairs, and more for Saxo Bank. Larsson’s views and analyses can be found on Saxo’s News & Research hub as well as at Saxo’s Academy where he hosts webinars focusing on chart analysis.


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