Crypto bounce favors the bears according to the charts

Are crypto bulls in for a crypto bounce? Maybe and maybe not.

For one thing, expect volatility to remain high over the short-term. That’s great for scalpers, but what about the long-term? Is crypto a good long-term investment? Well, with global Central Banks hell bent on printing money to pay for public policies, investor’s are seeking alternatives.

For sure, crypto currencies offer a great alternative to Central Bank issued paper money. Not surprisingly, people are figuring out that paper money is actually debt issued by Central Banks. Over time this is long-term bullish.

I think a quick look at the charts will help us determine if now is a good time to buy.

Bitcoin Technical Analysis

crypto bounce btc eth — Bulls and bears duke it out as a bottom remains elusive

Ethereum Technical Analysis

crypto bounce eth btc — Ethereum’s price chart struggles to turn bullish

As the above charts demonstrate, the technical picture is definitely bearish. At least for now.

Bitcoin and Ethereum technicals stacked up in a neat bullet list:

Price struggles to hold the 10 day moving average, failing multiple times, a bearish sign
RSI persistently below the 50 level, indicating a bearish trend
Bitcoin and Ethereum set up a double bottoms, possibly a bullish sign

Conclusion

In summary, the big question is has Bitcoin and Ethereum bottomed? Of course, this question is on everybody’s mind these days. For now, the smart move is to wait and see if prices can trade consistently above the 10 day moving average.

In similar fashion, if the RSI could persistently stay above 50 we’d be off to the races! But, that’s not the case. From a technical analysis point of view, the charts are bearish. At least for time being

We cannot confirm a bottom at this point.

Savvy investors would be wise to keep their powder dry and wait for the technical posture to improve and trade in blocks.

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