Bitcoin's Correction Ahead? BTC and ETH Analysis for 07/07/23

After achieving a 1.5-year high of $31,500, Bitcoin swiftly took a downturn, reaching the bottom border of its current trading range at $29,700. At present, the important support level lies at $29,500. Below this, the buyer's territory ranges from $28,700 to $29,200, followed by a wider zone from $26,800 to $28,000.

If the upward trend persists, buyers will need to promptly and robustly overcome the $31,500 level and venture into the resistance zone of $31,600-$32,600. Otherwise, Bitcoin could be looking at a correction with the potential to set new local lows.

Ethereum couldn't quite stretch to hit the psychological level of $2,000, instead reaching a resistance zone between $1,846 and $1,977 before taking a tumble, along with Bitcoin. Currently, the price is nestled near the $1,805 to $1,830 support zone. Further dips could trigger buying within the $1,724-$1,770 range. The overall upward trajectory for Ethereum remains as long as the price holds above $1,700.

Broadly speaking, it wouldn't be surprising to see Ethereum mirror Bitcoin's behavior, given their tight correlation. There's a good chance that the upward trend has reached its local peaks, which could pave the way for a correction.

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Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the Gagarin News editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.

TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.

Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.

К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).

Gray range on the chart — a support zone.

Red range on the chart — a resistance zone.

Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.

This analysis was informed by the following educational materials and articles from Gagarin News: