Mid-Week Technical Outlook: Cryptocurrencies

<p><strong>By <a href="http://investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a> </strong></p>
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<ul>
<li>Tension grips markets ahead of US CPI report</li>
<li>Bitcoin forms ‘Death Cross’ technical pattern</li>
<li>Ethereum flirts near oversold levels</li>
<li>Cardano gets no love</li>
<li>Dogecoin approaches key support</li>
</ul>
<p><strong>A sense of tension gripped financial markets on Wednesday as investors braced for the latest U.S. inflation data published later today.</strong></p>
<p>Asian stocks were painted red this morning after a selloff in technology stocks dragged Wall Street lower overnight. European stocks opened lower amid the negative sentiment, with market players adopting a cautious stance towards riskier assets. There seems to be little action in the currency space with the dollar drawing some strength from the risk-off mood. Interestingly, gold has secured a daily close below $1915 as discussed in the <a href="https://www.forextime.com/market-analysis/trade-week-gold-outlook-hinges-us-cpi-data"><strong>(Trade of the Week).</strong> </a></p>
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<h4><strong>With markets likely to remain on standby mode ahead of the US CPI, </strong>our focus falls on the cryptocurrency space –<strong> especially after Bitcoin triggered a ‘death cross’ technical pattern!</strong></h4>
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<h3><strong>More pain ahead for Bitcoin?</strong></h3>
<p>The past few weeks have been choppy for Bitcoin amid fears around FTX liquidations and its potential impact on the crypto market. Bitcoin has shed roughly 15% in the second half of 2023 with prices recently triggering a “death cross” pattern on the daily timeframe.</p>
<blockquote><p>A death cross happens when an asset’s 50-day simple moving average (SMA) cross moves below its 200-day SMA. This technical signal is widely viewed as a sign that prices may continue to decline further in the medium to longer term.</p></blockquote>
<ul>
<li><strong>So essentially, Bitcoin prices have the potential to sink even further on the daily timeframe with a solid breakout and daily close below $25,000 opening a path towards $24,200 and $23,000 respectively. </strong></li>
<li><strong>Should $25,000 prove to be reliable support, prices may rebound towards resistance at $26,400 before potentially heading towards $28,000.</strong></li>
</ul>
<p><img decoding="async" fetchpriority="high" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/BITCOINDaily_0.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="4bacbbb5-7078-409d-b54c-c0b395b85275" data-src="/s3-static/users/user17/BITCOINDaily_0.png" /></p>
<h3><strong>Ethereum flirts near oversold levels</strong></h3>
<p>Ethereum remains under pressure on the daily charts as there have been consistently lower lows and lower highs with prices trading below the 50, 100, and 200-day SMA. However, the Relative Strength Index (RSI) on the daily charts recently dipped below 30, indicating that it may be oversold. This could provide an opportunity for bulls to strike, especially if $1500 proves to be a reliable support level.</p>
<ul>
<li><strong>A rebound from $1500 could inspire a move back towards $1665 and $1750, just above the 50-day SMA.</strong></li>
<li><strong>Should prices slip below $1500, this may open a path to levels not seen since January around $1300.</strong></li>
</ul>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/ETHEREUMDaily.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="a2b56f43-9ada-430b-ae83-833a5d58fec8" data-src="/s3-static/users/user17/ETHEREUMDaily.png" /></p>
<h3><strong>Cardano gets no love </strong></h3>
<p>Cardano prices are trading near their lowest levels in 2023, falling below $0.25 as bears switch into higher gear. Funny enough, the cryptocurrency is back to where it started the year with technical indicators showing mixed signals. Although prices are respecting a bearish channel and remain well below the 50,100 and 200-day SMA, the RSI recently dipped below 30, indicating that it may be oversold.</p>
<ul>
<li><strong>If prices can push back above 0.2500, this may open a path back towards the 50-day SMA at 0.2760. </strong></li>
<li><strong>Sustained weakness below 0.2500 could send Cardano towards 0.2300. </strong></li>
</ul>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/CARDANODaily.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="70098164-2f78-4d12-9a21-b29b92aa57f5" data-src="/s3-static/users/user17/CARDANODaily.png" /></p>
<h3><strong>Dogecoin approaches key support </strong></h3>
<p>The past few days have been choppy for Dogecoin with prices slowly approaching key support at 0.0550. Even though the cryptocurrency is respecting a bearish channel, there seems to be some indecision on the daily charts.</p>
<ul>
<li><strong>Key levels of interest can be found at 0.5500 and 0.0680 where the 100-day SMA resides. A breakout could be on the horizon, but this may need a fresh directional catalyst. </strong></li>
</ul>
<p><img decoding="async" loading="lazy" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/DOGECOINDaily.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="55bc5463-1c73-42d4-a7f7-2e7c1407c9a0" data-src="/s3-static/users/user17/DOGECOINDaily.png" /></p>
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