Bitcoin (Cryptography: BTC) and Ethereum (CRYPTO: ETH) was trading flat on Tuesday afternoon, after each surged about 26% in the last six days.
Some analysts believe that the popularity and need for the decentralized crypto sector has skyrocketed, at least in Russia, following severe Russian sanctions that have exposed the traditional financial system.
From a chart perspective, after a long decline of a month, both Bitcoin and Ethereum have developed a bullish pattern on their daily charts. This could lead to greater bullish execution in the future. However, Ethereum’s Relative Strength Index (RSI) has room to move high before the warning sign flashes, so Ethereum may have room to do so in the near future.
However, keep in mind that negative or positive reactions to events, revenue prints or news headlines that affect the general market can quickly invalidate patterns or breakouts. As the saying goes, “Trends are your friends until otherwise” and position traders need to set clear stops and manage risk vs. rewards.
In the news: For ordinary Russians, crypto may provide a safe haven from geopolitical events that destroy the official currency of their country. On Tuesday, the ruble plunged to a record low of $ 0.0084 after many countries moved to block Russia from the Swift international payment system and retail banks in North America and Europe stopped trading with Russian banks.
Bitcoin and Ethereum may also offer a payment system for the Russian population to buy in another Tuesday development Visa Inc (NYSE: V) and Mastercard Inc (NYSE: MA) has decided to block Russian banks from using the payment network.
But the Vice Prime Minister of Ukraine Mihairo Fyodorov On Sunday, we sought a major crypto platform for freezing wallets owned by all Russian citizens. Cryptographic Exchange Binance told Reuters that it has no plans to restrict access to the platform to other Russian clients while freezing the accounts of users on the sanctions list.
Related: High demand for Bitcoin in Russia’s invasion leads to Apex crypto trading at Ukraine’s Big Premium
Bitcoin chart: Bitcoin turned to an uptrend on February 24th. This has been confirmed at both higher lows and higher highs. The latest highs were printed at the $ 37,020 level on February 27, and the uptrend remains as long as the crypto remains above the area at the lows of the next swing.
- Bitcoin is also on the daily chart, with the left shoulder formed between February 9th and February 16th, the head formed between February 17th and Tuesday, and the right shoulder forming between February 17th and Tuesday. The day when Bitcoin prints higher lows that may have set the reverse head and shoulder pattern.
- Once the pattern is recognized, traders can monitor Bitcoin for more than average volume when it deviates from the pattern’s neckline.
- The formation of a higher low on the possible right shoulder also helps to cool the Bitcoin RSI, which is measured at about 60%.
- Bitcoin resistance is $ 45,814 and $ 48,475, and support is $ 42,233 and $ 39,600.
Want to analyze directly? Find me in the BZ Pro Lounge! Click here for a free trial.
Ethereum Chart: Like Bitcoin, Ethereum is on the rise and can settle on the right shoulder of the head and shoulder pattern, and the internal shape of the pattern is formed on the same timeline as Bitcoin.
- The RSI of Ethereum is measured at about 53%. This indicates that cryptocurrencies can be traded much higher before entering the overbought territory.
- Like Bitcoin, bullish traders can monitor a large number of neckline interruptions to determine if a pattern has been recognized.
- Ethereum resistance is $ 3,057 and $ 3,240, and support is $ 2,890 and $ 2,609.
