• Bitcoin is down by a sharp 11% over the week as the bears pushed the market down toward $41,000
• Ethereum also saw a precipitous 12% over the week as it heads back toward $3,000

Just when the market started to show the slightest hint of optimism, it seems the bears took advantage and removed any positivity. Toward the end of April, Bitcoin had shown the first signal of ending the drawn-out period of consolidation after breaking a triangle and pushing to the 200-day MA. Unfortunately, the market reversed from there and has been retracing ever since.

Nevertheless, it still looks like a healthy retracement, and we aren’t in deep waters just yet. Bitcoin had been in an extended decline since November and entered a period of consolidation since the beginning of January.

What has been going on?

Looking at the daily chart , we can clearly see the triangle break toward the end of March as BTC penetrated beyond resistance at $44,750. The market had attempted to breach this level on multiple occasions since the start of the year, most notably during February, when it failed three times.

After successfully pushing above the triangle, BTC started to climb higher, but the momentum stalled when price action reached the 200-day MA level at around $48,000. In addition, there was also a long-term bearish .382 Fibonacci Retracement level in the same area, further adding to the resistance.

As a result, BTC rolled over from here and started to head lower. Last Wednesday, BTC ended up falling back beneath the $44,750 resistance as it returned to the previous phase of consolidation. It continued to edge lower over the weekend to meet support at the January 2021 highs around $42,000.

Today’s 11% price drop caused BTC to break $42,000 and spike as low as $41,000 so far in the session. There is minor support here at $41,150, provided by a short-term .618 Fib Retracement.

BTC price short-term prediction: Neutral

Although Bitcoin briefly flipped bullish after the triangle break, it has now returned to a neutral stance. To turn bullish now, the coin would have to break back above $44,750 and clear the 200-day MA level at $48,000. On the other side, a break beneath the March lows of around $37,000 is likely to turn the market bearish again.

Where is the resistance toward the upside?

On the other side, the first resistance lies at $42,000 (Jan 2021 highs). This is followed by resistance at $44,000, $44,750 (February support), $46,000, and $48,000 ( 200-day MA & bearish .382 Fib Retracement).

To learn about where the price of Ethereum is likely headed next and ETH’s key support and resistance areas, check out the original article posted on CoinCodex: https://coincodex.com/article/14193/bitcoin-ethereum-price-analysis-market-retracement-appears-as-bullish-optimism-fades/